Aleafia Health Announces Closing of a New $19 Million Credit Facility and Extension of Existing Credit Facility
December 29 2021 - 06:30AM
Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“
Aleafia
Health” or the “
Company”) is pleased to
announce the closing of a credit facility of up to $19 million (the
“
Credit Facility”).
“This financing improves our liquidity and capital structure as
the Company’s senior secured debt obligations will now mature in
December 2023 rather than in August 2022,” said Aleafia Health CEO
Geoffrey Benic. “The transaction allows us to continue the growth
of our core adult-use and medical cannabis sales channels, as we
again expect to realize sequential growth in both channels over the
previous quarter.”
The Credit Facility is financed by the Garrington Group of
Companies, a Toronto-based private lender providing working capital
financing to the underserved, small to mid-sized middle market
sector across North America, providing credit facilities that
generally range from $1 million to over $30 million. It consists of
a revolving receivables facility of up to $7 million and a term
loan of $12 million. The maturity date is December 2023. The term
loan was fully drawn by the Company upon closing. The revolving
receivables facility is expected to be drawn in January 2022 and
further thereafter as receivables grow with the Company’s revenue.
The interest rate is in-line with the Company’s existing credit
facility and is payable monthly. The Credit Facility is secured
primarily by way of first lien mortgages on the Company’s Paris,
Ontario and Grimsby, Ontario production facilities, and includes
customary financial and restrictive covenants. The net proceeds
from the Credit Facility will be used to fund working capital, to
repay $5 million in principal on the existing senior secured credit
facility, announced on August 23, 2021 (the “August Credit
Facility”), along with accrued interest and fees, and for
general corporate purposes.
The term of the August Credit Facility has been extended from
August 2022 to December 2023. In connection with that facility, a
first lien mortgage will be granted on the Company’s Port Perry,
Ontario outdoor cultivation property.
For Investor & Media Relations:
1-833-879-2533IR@AleafiaHealth.comLEARN MORE:
www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a vertically integrated and
federally licensed Canadian cannabis company offering cannabis
health and wellness services and products in Canada. The Company
has developed an international footprint, with subsidiaries or
investments in German and Australian medical cannabis companies and
has products available in both markets. The Company owns and
operates a virtual network of medical cannabis clinics staffed by
physicians and nurse practitioners who have seen over 75,000
patients to date.
Aleafia Health owns three licensed cannabis
production facilities and operates a strategically located
distribution centre all in the province of Ontario, including the
first large-scale, legal outdoor cultivation facility in Canadian
history. The Company produces a diverse portfolio of cannabis
derivative products including oils, capsules, edibles, sublingual
strips, and vapes, for sale in Canada in the medical and adult-use
markets, and in select international jurisdictions.
Forward Looking Information
This news release contains forward-looking information within
the meaning of applicable Canadian and United States securities
laws. Often, but not always, forward-looking information can be
identified by the use of words such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, or “believes” or variations
of such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will” be taken, occur
or be achieved. Forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company or its
subsidiaries to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information, including
risks contained in the Company’s annual information form filed with
Canadian securities regulators available on the Company’s SEDAR
profile at www.sedar.com. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information and no assurance can be
given that such events will occur in the disclosed time frames or
at all. The forward-looking information included in this news
release are made as of the date of this news release and the
Company does not undertake any obligation to publicly update such
forward-looking information to reflect new information, subsequent
events or otherwise unless required by applicable securities
legislation.
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