Auxly Cannabis Group, a consumer-packaged goods company in the cannabis products market, signed a non-binding term sheet 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.
Under the revised terms, the maturity date of the credit facility 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. In addition, the revised terms updated EBITDA and other financial and operational covenants for Auxly Leamington and increased quarterly principal payments throughout the term. The obligations of Auxly Leamington under the credit facility 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.
Auxly and the lenders are working toward a definitive binding amendment to the credit facility, although there can be no assurance that a definitive amendment agreement with the lenders will be reached. While Auxly and the lenders work toward definitive documentation, the lenders have provided Auxly with a third interim extension of the maturity date of the credit facility to Jan. 31.
