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.

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.