Delta 9 Cannabis amended its borrowing arrangement with Canadian Western Bank to increase its existing loan and credit facility to approximately $18.19 million.
“This increased debt financing, together with our recently completed short form prospectus offering of debenture units have well-positioned us to continue the Company’s growth and implementation of its business plan for the remainder of the year,” said Delta 9 CEO John Arbuthnot .
The principal terms of the amendment provide for the following:
- The limit for the demand operating loan under the original financing, for the purpose of financing day-to-day operations of the company, will increase to $4,000,000 from its limit of $2 million under the original financing. The interest rate under this loan segment is unchanged from its rate under the Original Financing at 1.00% per annum above the Bank’s prime lending rate.
- A credit facility in the amount of $500,000 to enable the delivery of letters of credit required in connection with the company’s operations is added.
- A non-revolving credit facility in the amount of $4 million for the purchase or lease of equipment required for the operation of the company’s business is added, with interest to float at a rate of 1.70% above the Bank’s prime lending rate, with fixed rate pricing to be the subject of negotiation up to the date of drawdown.
- The principal amounts of a demand non-revolving loan and a non-revolving equipment credit facility under the original financing have been reduced to reflect repayment of principal that was made by the company since the date of the original financing.
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The availability of the amended financing arrangements with the bank is conditional on the bank’s satisfactory due diligence of the company and finalization of documentation relating to the arrangement.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market.
