Supreme Cannabis gets C$90 million senior secured credit facilities

By Sarah Lizee

Olympia, Wash., Nov. 14 – Supreme Cannabis Co., Inc. entered into a credit agreement for C$90 million of senior secured credit facilities, consisting of a C$70 million term loan and a C$20 million revolver, according to a press release.

Bank of Montreal is the lead arranger and agent.

The credit facility is secured by the assets of the company, including the 7Acres facility.

Pricing is based on a set margin over the BMO CAD Prime Rate or bankers' acceptance and a pricing grid linked to financial ratios. It is expected to be at the outset between 500 basis points and 600 bps per annum.

The credit facility has a three-year term and contains customary financial and restrictive covenants.

Supreme Cannabis may repay any portion drawn under the credit facility at any time without penalty.

The company has the option to increase the revolver by C$10 million subject to agreement by the lenders and satisfaction of conditions.

The company drew C$55 million under the term loan at closing.

Supreme Cannabis is a Toronto-based B2B wholesale marijuana company.

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