- Aleafia Health (AH) is pleased to announce the closing of a $10 million credit facility
- The full amount of the credit facility was drawn down by the company on closing
- The credit facility carries a 12-month term, with an option for early repayment, and accrues interest at a rate of 12 per cent per annum
- As partial consideration for the credit facility, Aleafia has granted 1,000,000 common share purchase warrants to the lender
- The net proceeds from the credit facility are expected to be used to support a number of growth initiatives
- Aleafia Health is a federally licensed Canadian cannabis company
- Aleafia Health Inc. (AH) opened trading at C$0.295 per share
Aleafia Health (AH) is pleased to announce the closing of a $10 million senior secured term (non-revolving) credit facility.
“This credit facility provides us with greater financial flexibility to pursue strategic opportunities and continue the robust sales growth realized during our most recent quarter. This transaction improves our capital structure and provides a lower cost of capital that we believe directly benefits our shareholders,” said Aleafia Health CEO Geoffrey Benic.
“Our sales momentum across multiple adult-use product categories, continued scaling of our medical cannabis ecosystem, and the near-term harvest of our largest outdoor cannabis crop to date sets the stage for a strong second half of 2021.”
The full amount of the credit facility was drawn down by the company on closing.
The credit facility carries a 12-month term, with an option for early repayment, and accrues interest at a rate of 12 per cent per annum, with the interest and principal amounts due upon maturity.
The outstanding amount, together with accrued and unpaid interest, may be repaid by the company at any time. The financing is secured by first-lien mortgages on the Paris, Ontario and Grimsby, Ontario production facilities.
As partial consideration for the credit facility, Aleafia has granted 1,000,000 common share purchase warrants to the lender.
Each purchase warrant entitles the lender to acquire one common share at an exercise price of $0.32 until August 20, 2023.
The net proceeds from the credit facility are expected to be used to support a number of growth initiatives, including improved product availability in the adult-use business, accelerating onboarding of new employer relationships under the exclusive Unifor agreement, and operational enhancements at its manufacturing facility in Paris, Ontario.
Aleafia Health is a federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada.
Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre in Ontario.
Aleafia Health Inc. (AH) opened trading at C$0.295 per share.
