Credit Facility – MJ Shareholders https://mjshareholders.com The Ultimate Marijuana Business Directory Fri, 08 Jul 2022 17:45:33 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.4 Vext Announces $22.2 Million Credit Facility https://mjshareholders.com/vext-announces-22-2-million-credit-facility/ Fri, 08 Jul 2022 17:45:33 +0000 https://www.cannabisfn.com/?p=2954845

Ryan Allway

July 8th, 2022

News, Top News


Credit facility composed of two secured term loans bearing interest at 7.5%. Will be used to retire current secured debt, which currently bears an average rate of 10%. All currency is presented in USD.

VANCOUVER, BCJuly 8, 2022 /CNW/ – Vext Science, Inc. (“Vext” or the “Company”) (CSE: VEXT) (OTCQX: VEXTF) a cannabinoid brand leader based in Arizona, leveraging its core expertise in extraction, manufacturing, cultivation and marketing to build a profitable multi-state footprint, today announced that it has entered into an agreement with a California-based lender for a $22.2 million credit facility (the “Credit Facility”), which will be used to refinance current secured debt, and working capital for potential acquisitions, capital expenditures and general and administrative expenses.

Eric Offenberger, CEO of Vext stated, “This credit facility both lowers Vext’s cost of capital, and gives us additional flexibility as we continue to execute our growth plans in Arizona and Ohio. The next 12 months are expected to be a period of growth for Vext. With a solid balance sheet, ongoing free cash flow, and access to relatively low cost, non-dilutive capital, we are in a position of strength to continue generating growth and profitability for shareholders.”

Terms of Credit Facility

The Credit Facility is comprised of two term loans. The first, is a $17.185 million 20-year first lien secured term loan, bearing interest of WSJ Prime + 2.75%, with a floor price of 6.25%. The second, is a $5 million five-year second lien secured term loan, bearing interest at WSJ Prime + 2.75%, with a floor price of 6.25%.

Canaccord Genuity acted as a financial adviser to Vext in connection with the Credit Facility.

For more details, visit Vext’s investor website or contact the IR team at [email protected].

About Vext Science, Inc.

Vext Science, Inc. is a US-based Cannabis THC and Hemp cannabinoid products company manufacturing THC cartridges, concentrates, edibles and accessories under the Vapen™ Brand, and Hemp based products under the Pure Touch Botanicals brand as well as the Vapen CBD brand. Based in Arizona, Vext Science, Inc. has one of the leading THC concentrates, edibles, and distillate cartridge brands sold in most of the state’s 100+ dispensaries. Herbal Wellness Center is one of Arizona’s leading dispensaries and we execute all aspects of the cultivation, extraction, edibles infusion and manufacturing processes which insures a product of the highest quality and purity. Product quality and purity are core to our marketing strategy. Vext Science, Inc. is executing its business growth by leveraging experience and expertise in extractions, product manufacturing, and marketing to expand in the U.S. through revenue and profit-sharing joint venture partnerships. For more information visit our website at www.VextScience.com or connect with us on LinkedIn and Twitter.

For more details on the Vapen brand:

Vapen website: VapenBrands.com

Instagram: @vapen

Facebook: @vapenbrands

COVID-19 Risk Factor

Vext may be impacted by business interruptions resulting from pandemics and public health emergencies, including those related to COVID-19. An outbreak of infectious disease, a pandemic, or a similar public health threat, such as the recent outbreak of COVID-19, or a fear of any of the foregoing, could adversely impact Vext by causing operating, manufacturing, supply chain, and project development delays and disruptions, labor shortages, travel, and shipping disruption and shutdowns (including as a result of government regulation and prevention measures). It is unknown whether and how Vext may be affected if such a pandemic persists for an extended period of time, including as a result of the waiver of regulatory requirements or the implementation of emergency regulations to which Vext is subject. Although Vext has been deemed essential and/or has been permitted to continue operating its facilities in the states in which it operates during the pendency of the COVID-19 pandemic, there is no assurance that the Company’s operations will continue to be deemed essential and/or will continue to be permitted to operate. Vext may incur expenses or delays relating to such events outside of its control, which could have a material adverse impact on its business, operating results, financial condition and the trading price of the Company’s Common Shares.

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Vext’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward- looking statements.

Forward-looking statements may include, without limitation, statements related COVID-19, to future developments, the expected use of the Credit Facility and the business and operations of Vext.

Although Vext has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; being engaged in activities currently considered illegal under U.S. Federal laws; change in laws; reliance on management; requirements for additional financing; competition; hindered market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Because of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward- looking statements in this news release are made as of the date of this release. Vext disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Vext does not assume any liability for disclosure relating to any other company mentioned herein.

The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

Eric Offenberger
Chief Executive Officer
844-211-3725

SOURCE VEXT Science, Inc

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


]]>
Aleafia Health Announces Closing of $10 Million Credit Facility https://mjshareholders.com/aleafia-health-announces-closing-of-10-million-credit-facility/ Mon, 23 Aug 2021 18:10:11 +0000 https://www.cannabisfn.com/?p=2931218

Ryan Allway

August 23rd, 2021


  • Credit Facility provides financial capacity to pursue accretive growth opportunities
  • New debt lender increases financial flexibility with new source of capital
  • Improves liquidity by growing cash and marketable securities balance to $25 million

TORONTO, Aug. 23, 2021 (GLOBE NEWSWIRE) — Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”), a leader in cannabis wellness products and services, is pleased to announce the closing of a $10 million senior secured term (non-revolving) credit facility (the “Credit Facility”).

“This Credit Facility provides us with greater financial flexibility to pursue strategic opportunities and continue the robust sales growth realized during our most recent quarter. This transaction improves our capital structure and provides a lower cost of capital that we believe directly benefits our shareholders,” said Aleafia Health CEO Geoffrey Benic. “Our sales momentum across multiple adult-use product categories, continued scaling of our medical cannabis ecosystem, and the near-term harvest of our largest outdoor cannabis crop to date sets the stage for a strong second half of 2021.”

The full amount of the Credit Facility was drawn down by the Company on closing. The Credit Facility carries a 12-month term, with an option for early repayment, and accrues interest at a rate of 12% per annum, with the interest and principal amounts due upon maturity. The outstanding amount of the Credit Facility together with accrued and unpaid interest thereon, may be repaid by the Company at any time and also includes certain mandatory prepayment obligations upon certain specified incurrences. The Credit Facility is secured by first lien mortgages on the Paris, Ontario and Grimsby, Ontario production facilities.

As partial consideration for the Credit Facility, the Company has granted to the lender 1,000,000 common share purchase warrants (the “Warrants”) of the Company. Each Warrant entitles the holder thereof to acquire one common share (each, a “Warrant Share”) in the capital of the Company at an exercise price of $0.32, subject to adjustment in certain circumstances, until August 20, 2023. The Warrants vest in equal instalments of 250,000 Warrants commencing on November 20, 2021, and subsequently every three (3) months thereafter, subject to adjustment in certain circumstances. The Warrants are not transferable other than to affiliates of the lender.

The Toronto Stock Exchange has conditionally approved the listing of the Warrant Shares issuable on the due exercise of the Warrants. The Warrants and the Warrants Shares are subject to a statutory holder period in accordance with applicable securities laws.

The net proceeds from the Credit Facility are expected to be used to support accretive growth initiatives, including improved product availability in the adult-use business, accelerating onboarding of new employer relationships under the exclusive Unifor agreement, operational efficiency enhancements on the production lines at its manufacturing facility in Paris, Ontario, and for other general corporate purposes.

For Investor & Media Relations:

Nicholas Bergamini, VP Investor Relations
1-833-879-2533
[email protected]
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada. The Company has developed an international footprint, with subsidiaries or investments in German and Australian medical cannabis companies and has products available in both markets. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners who have seen over 75,000 patients to date.

Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the medical and adult-use markets, and in select international jurisdictions.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Specific forward-looking information contained in this release includes information relating, but not limited, to the Credit Facility, including the use of the net proceeds from the Credit Facility, and the Warrants. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


]]>