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  • Levitee Labs Inc. (LVT) has entered into a financing agreement for up to $12 million to fund further business expansion
  • Levitee will use the proceeds from the loan to support its prospective future acquisitions of several assets in the clinics, pharmacies, mental health space and for working capital purposes
  • The secured loan facility was arranged by RiverFort Global Capital Ltd., and the loan itself is from RiverFort Global Opportunities PCC Ltd.
  • Levitee agreed to draw down an initial $2.5 million tranche, maturing as of October 20, 2023, with interest payable by the company in an equal amount to 10 per cent per year of the amount of the tranche advance
  • Levitee will issue 1,378,778 warrants to RiverFort where each warrant will entitle RiverFort to purchase one common share of Levitee at a price of $0.68 per share for three years
  • Levitee Labs Inc. (LVT) is down 11.36 per cent and is trading at $0.39 per share at 1:35 p.m. ET

Levitee Labs Inc. (LVT) has entered into a financing agreement for up to $12 million to fund further business expansion.

Levitee will use the proceeds from the loan to support future acquisitions of several assets in the clinics, pharmacies and mental health space and for working capital purposes.

The secured loan facility was arranged by RiverFort Global Capital Ltd., and the loan itself is from RiverFort Global Opportunities PCC Ltd.

Levitee agreed to draw down an initial $2.5 million tranche, maturing as of October 20, 2023, with interest payable by the company in an equal amount to 10 per cent per year of the amount of the tranche advance.

Advances under the loan will be subject to 20 per cent interest payable by Levitee and are to be applied to the term between the date of the relevant advance date and the maturity date.

The closing of the tranche, and each subsequent tranche of the loan, is subject to the completion of customary closing conditions involving Levitee and RiverFort, including final regulatory approval by the CSE.

The loan provides 25 per cent warrant coverage for each advance or drawdown determined as being 25 per cent of the principal amount of the tranche divided by Levitee’s share price at the time of the advance.

The exercise price of the warrants will be set at 150 per cent of Levitee’s share price at the same time and the warrants will expire three years after the date they were granted.

Levitee will issue 1,378,778 warrants to RiverFort where each warrant will entitle RiverFort to purchase one common share of Levitee at a price of $0.68 per share for three years.

RiverFort has the option to convert upwards 50 per cent of the principal amount of the loan into shares at a fixed conversion equal to 125 per cent of the market price of the shares at the time of the drawdown.

The fixed conversion price for the tranche will be $0.544 per share.

RiverFort may at its option (once every 30 days) request and require that the debt, represented by the interest, has been deemed to accrue on the loan to be converted into shares according to a private placement price equal to 90 per cent of the last closing price of the shares on the day prior to the notice of the conversion.

Levitee Labs Inc. (LVT) is down 11.36 per cent and is trading at $0.39 per share at 1:35 p.m. ET.

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