Amended Loan Agreement Increases Amount From $ 7 Million To $ 7.175 Million And Extends Maturity Date To February 1, 2023
Heritage Cannabis Holdings Corp said it has entered into an amended non-revolving loan agreement with BJK Holdings Ltd, improving the terms of its existing loan with BJK agreed on March 29, 2021.
The amended loan agreement brings the loan amount to $ 7.175 million from $ 7 million and extends the maturity date to February 1, 2023.
As part of the revised deal, Heritage Cannabis paid a one-time extension fee of $ 175,000 to BJK on October 12, 2021.
BJK also advanced $ 2.6 million to Heritage on the closing date, at the prime rate of () plus 1.25%, automatically adjusted for each quoted or published rate change.
Heritage explained that the additional loan was advanced to help finance capital acquisitions and for general corporate purposes.
The cannabis company has also secured a revolving line of credit up to a maximum of $ 5 million, with an interest rate of 18% per annum. In total, Heritage now has access to $ 14.775 million through its amended loan agreement with BJK.
For its part, Heritage granted BJK 10 million warrants at an exercise price of $ 0.25 per share for a period of 24 months.
“We are very pleased to have secured this additional capital at such an exciting time in the company’s growth,” David Schwede, CEO of Heritage, said in a statement. “BJK’s improved conditions and access to additional funds are a testament to our strategy and provide flexibility and strength to our balance sheet as we consolidate our position in the Canadian cannabis market and execute our international strategy. “
Heritage plans to use the capital to fund its strong growth strategy.
David Thiessen of BJK also commented on behalf of his company: “We have been very impressed with the Heritage team and the execution at this point. “
“We believe that Heritage is on its way to becoming one of the leaders in the cannabis industry and we are delighted to be working with them to expand additional capital against the same security package,” said Thiessen. “We look forward to seeing our capital unlock additional value for all stakeholders. “
Heritage Cannabis is positioned to be a leader in the cannabis industry in North America, delivering innovative products to the legal medical and recreational cannabis markets in Canada and the United States. The company currently has an extensive portfolio of high quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., CB4 and ArthroCBD.
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