Entourage Well being Corp. (previously WeedMD Inc.) (TSXV:ENTG) (OTCQX:ETRGF) (FSE:4WE) revealed Friday it has upsized its present credit score facility with an affiliate of the LiUNA Pension Fund of Central and Japanese Canada for an additional $20 million in non-dilutive funding.
The credit score facility continues to bear an rate of interest of 15% with the choice, on the firm’s discretion, to capitalize curiosity in lieu of money funds of curiosity and is set to mature in August 2022.
It’s secured by the property of Entourage and its subsidiaries, together with the corporate’s manufacturing services, and comprises customary monetary and different covenants.
The Toronto, Canada-based hashish firm famous it plans to make use of the credit score facility for traditional working capital actions because it continues to focus on sustainable worthwhile development.
To realize worthwhile development, Entourage is advancing its cultivation practices – lately buying a tissue tradition enterprise and presenting new genetics.
“With the current integration of our famend tissue tradition enterprise and addition of recent genetics, our cultivation group is enhancing our Strathroy facility utilizing the most recent science-based plant efficiency information, and executing on our promise to satisfy evolving shopper and affected person preferences with premium merchandise,” George Scorsis, interim CEO and Govt Chairman of Entourage said. “With our enhanced propagation strategies and upgraded suite of merchandise, we’re setting a transparent path to reaching our profitability objectives in late 2022.”
“This added help from our trusted associate and strategic investor, LiUNA Pension Fund, supplies us with vital non-dilutive financing which can improve our liquidity place and supply extra working capital to drive gross sales and pursue focused development initiatives,” he added.
Modification To Credit score Facility With Financial institution Of Montreal
Entourage additionally confirmed Friday it has signed an extra modification to its senior secured credit score facility entered into on March 29, 2019 between the corporate and Financial institution of Montreal. The newest amendments to the senior credit score facility modify the phrases underneath which Entourage secured as much as $39 million of debt financing over a three-year time period ending in 2022.
Below the phrases of the modification, the corporate secured a short lived bulge facility of $500,000 out there for a restricted time frame and solely for use for working capital functions.
Newer information from Entourage:
Entourage Health Posts $14.9 Million Record Revenue In Q3 Following Rebrand From WeedMD
Entourage Health Corp. Formerly WeedMD Starts Trading Under New Ticker Symbol
Value Motion: Entourage’s shares closed Thursday market session 8.13% increased at $0.07 per share.
Associated Hyperlink: 14 Founder-Friendly Investment Firms Pioneering The Cannabis Space
Photograph: Courtesy of CRYSTALWEED cannabis on Unsplash
