- True Leaf (MJ) has secured additional debt funding for strategic priorities
- The new mortgage is comprised of a 12-month term, $2,100,000 mortgage loan
- The maturity date is now November 1, 2022. No principal payments prior to maturity, interest only
- The new mortgage is subject to certain financial covenants and provisions
- It also renewed and expanded the first mortgage on the Lumby Property
- True Leaf Brands Inc. (MJ) is up 2.17 per cent, trading at C$40.24 at 12:20 pm ET
True Leaf Brands (MJ) has received new debt funding for its Monashee Gateway Business Park project and cannabis processing facility.
True Leaf has renewed and increased its second mortgage with 1263815 BC LTD. The new mortgage is comprised of a 12-month term, $2,100,000 mortgage loan (previously $1,700,000) bearing interest at a fixed rate of 12 per cent. The maturity date is now November 1, 2022. No principal payments are required prior to maturity, interest only.
The new mortgage is secured by a second mortgage on the Lumby Property and a second priority security interest in all of its present and after-acquired personal property for its True Leaf Cannabis Inc. division.
The new mortgage is subject to certain customary financial covenants and the following provisions regarding the additional $242,500:
- Six months interest reserve will be deducted from the Advance and applied to the first six months of interest payments ($126,000), starting with the November 1, 2021 payment.
- A 1.5 per cent amendment/renewal fee ($31,500) will be deducted from the Advance.
- Monthly payments will increase from $17,000 per month to $21,000 per month.
- Legal fees will be payable by the borrower and deducted from the Advance.
Earlier this month, it renewed and expanded the first mortgage on the Lumby Property. More information about the terms and conditions of this renewal is set out in its press release issued on October 5, 2021.
True Leaf is a Licensed Producer of cannabis preparing to launch a program to provide path-to-market services for micro-cultivators. The program will operate from its 19,500 square foot facility in Lumby, British Columbia, and offer a full suite of in-house processing services to the craft cannabis community.
True Leaf Brands Inc. (MJ) is up 2.17 per cent, trading at C$40.24 at 12:20 pm ET.