Auxly Cannabis Group, a consumer packaged goods company in the cannabis products market, signed a definitive agreement to amend and restate the credit facility between its wholly-owned subsidiary Auxly Leamington and a syndicate of lenders led by the BMO as administrative agent.
As first announced by the Auxly on Jan. 3, the credit facility was amended pursuant to the amendment agreement upon the following terms:
- The maturity date was extended by two years until Dec. 31, 2025, with an option for Auxly Leamington to extend the maturity date for an additional year by making a $2.5 million principal repayment by Dec. 31, 2025.
- The facility includes updated EBITDA and other financial and operational covenants for Auxly Leamington.
- The amendment increased quarterly principal payments throughout the term.
- The obligations of Auxly Leamington under the credit facility will continue to be supported by a $33 million limited guarantee by Auxly and a pledge by Auxly of all of its securities of Auxly Leamington.
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“We are pleased to have completed the amendment to our credit facility and appreciate the strong support and commitment from our banking partners,” Travis Wong, CFO of Auxly, said. “These amendments provide additional flexibility that allows us to focus on our strategic growth objectives as we maintain our diligent approach to capital allocation.”
