Acreage Pharms, a subsidiary of Invictus, has signed a non-binding term sheet for a secured term loan of up to $6 million with Trichome Financial with an annual interest rate of 10.0%.
Invictus has also signed the term sheet as a guarantor of the term loan. The funds will be used for the completion of the 90,000 square foot Phase III cultivation facility near Edson, AB, including the purchase of automated processing equipment and the development of the EU-GMP facility with the remainder to be used for general working capital purposes for both Acreage and the company.
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The Term Sheet includes a binding provision whereby, subject to TSX Venture Exchange approval, the company will be required to issue Trichome 1,000,000 common shares if the company does not close the term loan on or before September 13, 2019 or such other mutually agreed upon date.
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The proposed term loan matures 24 months after closing and is available in two tranches: one for $3 million advanced at the time of closing; and one for $3 million to be available no earlier than two months after closing, conditional upon Acreage having used the proceeds of the first tranche in the manner agreed between the parties and the loan being in good standing.
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Invictus is a global cannabis company with a focus on the Canadian cannabis space.
