Source: Entourage Health Corp.
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  • Entourage Health Corp. (ENTG) has successfully closed the second $15 million tranche of its upsized credit facility
  • The credit facility was with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF)
  • Entourage plans to use the credit facility for general working capital purposes
  • LPF is an insider of the company as it owns greater than 10 per cent of the common shares of the company
  • Entourage Health Corp. is the publicly-traded parent company of Entourage Brands Corp. and CannTx Life Sciences Inc
  • Entourage Health Corp. opened trading at $0.03

Entourage Health Corp. (ENTG) has successfully closed the second $15 million tranche of its upsized credit facility.

The credit facility was with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF).

Entourage plans to use the credit facility for general working capital purposes.

Concurrent with the closing, the company and LPF signed an amended and restated credit agreement (ARCA) in connection with the credit facility,

The credit facility continues to bear an interest rate of 15.25 per cent with the option, at the company’s discretion, to capitalize interest in lieu of cash payments of interest and is set to mature on December 31, 2024.

The credit facility is secured by the assets of the company and its subsidiaries, including the company’s production facilities. It contains customary financial and other covenants and typical conditions precedent for a transaction of this nature.

LPF’s security under the credit facility is in the second position of the company’s senior creditor.

LPF is an insider of the company as it owns greater than 10 per cent of the common shares of the company. Accordingly, the amending of the credit agreement represents a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).

The funds borrowed under the credit facility are not convertible into or repayable by the issuance of equity or voting securities of the company.

Entourage Health Corp. is the publicly-traded parent company of Entourage Brands Corp. and CannTx Life Sciences Inc., licence holders producing and distributing cannabis products for both the medical and adult-use markets.

Entourage Health Corp. opened trading at $0.03.


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