By Devika Patel
Knoxville, Tenn., July 20 – Body and Mind Inc. arranged an $11.11 million debt financing with entities related to FocusGrowth Asset Management, LP, according to a press release.
The loan matures in four years and has a 13% coupon.
Under the terms of the loan, the company may immediately draw the initial term loan of $6.67 million, of which $6 million in funds is advanced to the company and the company may draw on the delayed draw term loan of $4.44 million prior to Dec. 31, 2021, of which $4 million in funds will be advanced to the company.
FocusGrowth also will receive 8 million warrants, with 4.8 million issued initially and 3.2 million available after the delayed draw term loan is drawn. The initial 4.8 million warrants are each exercisable at $0.40 until July 19, 2025. The remaining 3.2 million warrants are each exercisable at $0.45 until July 19, 2025.
The proceeds from the loan will be used for capital expenditures related to existing and future projects, and will also help fund the company's growing pipeline of future growth opportunities.
Body and Mind is a Vancouver, B.C.-based company that invests in medical and recreational cannabis cultivation, manufacturing and retail.
| Issuer: | Body and Mind Inc.
|
| Issue: | Debt financing
|
| Amount: | $11.11 million
|
| Maturity: | Four years
|
| Coupon: | 13%
|
| Warrants: | 8 million (4.8 million issued initially, with 3.2 million available after the delayed draw term loan is drawn)
|
| Warrant expiration: | July 19, 2025 (for 4.8 million warrants), July 19, 2025 (for 3.2 million warrants)
|
| Warrant strike price: | $0.40 (for 4.8 million warrants), $0.45 (for 3.2 million warrants),
|
| Investor: | FocusGrowth Asset Management, LP
|
| Announcement date: | July 20
|
| Distribution: | Private placement
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
