Friday , 25 September 2020


Cannabis Central: Debt Deals In December Shifted To Debt From Equity

With…cannabis companies still requiring capital to operate and grow their businesses debt deals have shifted from highly dilutive equity financing to debt from equity given the current depressed stock prices… even though adding debt payments could hamper short-term profitability. This article identifies a few such deals.

1. Curaleaf Holdings, Inc. (CSE:CURA; OTCQX:CURLF)

  • US$275 million Senior Secured Term Loan Facility
  • Interest rate of 13.0% per year, payable quarterly in arrears.
  • Maturity date is December 20, 2023
  • www.curaleaf.com

2. iAnthus (CSE: IAN ; OTCQX: ITHUF)

  • $36.15 million of senior secured convertible notes
  • Part of a broader $100 million financing plan that was announced in September 2019
  • Coupon rate of 13%, payable quarterly, will mature on May 14, 2021
  • Conversion price of $1.61 per share
  • The Notes are being issued with $18.08 million of three-year warrants with an exercise price of $1.67 per share
  • www.ianthuscapital.com

3. Indiva (TSXV:NDVA)

  • $2.1 million of unsecured convertible debentures
  • First tranche of a $4.0 million financing
  • The Debentures will mature in 36 months  with an interest rate of 10% per year
  • Conversion price is $0.20 per share
  • www.indiva.com

4. Jushi Holdings Inc. (CSE:JUSH; OTCQX:JUSHF)

  • US$27.46 million for 10% senior secured notes, interest payable in cash quarterly
  • Notes will mature on January 15, 2023
  • Purchasers of the Notes will also receive Warrants to acquire Class B subordinate voting shares with an expiry date of December 23, 2024, at an exercise price of US$1.58
  • www.jushico.com

5. Choom (CSE:CHOO; OTCQB:CHOOF)

  • Debenture units at $250,000 per unit for $4.1 million
  • The Debentures will mature on December 23, 2021
  • Interest rate of 10% per year, payable semi-annually
  • The Company also issued 1,666,666 share purchase warrants per debenture unit, each warrant to be exercisable to acquire one share for a four-year period at an exercise price of $0.20 per share
  • www.choomholdings.ca

6. The Green Organic Dutchman (TSX:TGOD; OTCQX:TGODF)

  • Senior secured first lien credit facility of up to $42.7 million
  • Committed $27.7 million senior secured term loan with an 18‐month term, and an additional uncommitted $15.0 million senior secured term loan
  • 7,000,000 share purchase warrants were issued to Maynbridge; each warrant is exercisable to acquire one common share of the TGOD for a period of 36 months at an exercise price of C$1.00 per share
  • www.tgod.ca

7. Avicanna (TSX:AVCN; OTCQX:AVCNF)

  • US$5 million revolving credit facility
  • Interest rate is 8.0% per year
  • www.avicanna.com
Editor’s Note: The above excerpts are from the original article by Chris Thompsonand have been re-formatted, color highlighted, edited ([ ])* and abridged (…) by Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money! – for the sake of clarity, and brevity to provide a fast and easy read.

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*(The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)