Entourage Health, a Canadian producer and distributor of cannabis products, partially repaid its senior secured credit facility with BMO from the net proceeds of the sale of its facility in Strathroy, ON, and cash. Meanwhile, the remaining balance of the credit facility of approximately $14.6 million was assumed by Entourage Health’s other senior secured lender, an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF), allowing for the full repayment of BMO.

In connection with the assignment of BMO’s rights, interests and obligations under the credit facility, BMO also assigned certain related security of Entourage Health. Following such assignment, Entourage Health has no further obligations to BMO under the terms of the credit facility, and the related security and obligations previously existing in favor of BMO have been assigned to LPF. The terms of the credit facility were not amended in connection with the assignment.

Entourage Health previously announced it would be ceasing its cultivation activities and has signed a three-year supply agreement with HEXO Corp. to buy bulk cannabis for its retail distribution and medical offerings. Entourage Health recently closed the sale of its Strathroy facility and also entered into a two-year agreement with the University of Guelph to store its genetics in-vitro and conduct research on its proprietary genetics.

“Through diligent financial management and strategic planning, we have completed the restructuring of our senior debt facilities. This achievement demonstrates our commitment to fiscal responsibility, simplification of our business at the operational and corporate level and paves the way for future growth opportunities with fewer restrictions,” George Scorsis, CEO and executive chairman of Entourage Health, said. “With our operations centralized at our production site in Aylmer, we have achieved full optimization and efficiency in our processes. The initiatives have already shown promising results, improving productivity and reducing production costs, aligning with the long-term best interests of our patients, customers and shareholders.”