Body and Mind extends debt financing – New Cannabis Ventures

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Offers flexibility in expansion plans

LAS VEGAS and VANCOUVER, BC, June 15, 2022 /PRNewswire/ — Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) (the “Company” or “BaM”), a U.S. multi-state cannabis operator, is is pleased to provide an update on the extension and amendments to its loan agreement (the “Loan Agreement”) entered into between the Company, DEP Nevada, Inc., a wholly owned subsidiary of the Company, the guarantors as set forth in the Loan Agreement, FG Agency Lending LLC (the “Agent”) and Bomind Holdings LLC (the “Lender”), dated July 19, 2021, as amended November 30, 2021.

The Company has entered into a second amendment to the loan agreement (“Amendment No. 2 to the loan agreement”) to extend the maturity date by one year until July 19, 2026. In addition, the Amendment No. 2 to the Loan Agreement allows the deadline for the Company to draw on the US$4.44 million Deferred Drawn Term Loan which will be extended from June 1, 2022 to March 31, 2023, whereby 4 million US dollars of funds will be advanced to the Company. The Company’s ability to draw on the Deferred Drawn Term Loan is subject to compliance with certain provisions of the Loan Agreement, including the provision of a satisfactory budget approved at the Lender’s sole discretion. Amendment No. 2 to the loan agreement increases the interest rate on funds advanced from 13% to 15% per annum, which additional interest of 2% may be paid in kind, with interest payable on the first day of each month. Amendment No. 2 to the loan agreement provides for an exit fee equal to 1.5% of the principal balance, which is due and payable upon any payment, partial or total, of the initial term loan and the loan deferred-draw term.

In partial consideration for Amendment No. 2 to the Loan Agreement, the Company issued 1,000,000 common stock warrants (each, a “Warrant”) to the Lender. Each Warrant entitles its holder to purchase common shares (each, a “Warrant Share”) at an exercise price of $0.16 per Warrant Share until June 14, 2027.

Amendment No. 2 to the Loan Agreement contains additional features and requirements and the material terms will be described in a current report on Form 8-K to be filed by the Company on or about June 17, 2022.

The expansion of our current lending facility aligns with our development program and provides flexibility for future opportunities.

Michael Mills, CEO of Body and Mind

As we continue with our expansion plans, this opportunity to amend the loan facility provides the Company with the ability to pursue opportunities.

About Body and Spirit Inc.

BaM is an American operations-focused, multi-state cannabis operator that invests in the cultivation, production, and retail of high-quality medical and recreational cannabis.

BaM continues to expand its operations in Nevada, California, Arkansas, Ohio and Michigan and is dedicated to increasing shareholder value by focusing its time and resources on improving operational efficiency, l facility expansion, state licensing opportunities, and mergers and acquisitions.

Our wholly-owned Nevada subsidiary obtained one of the first medical marijuana cultivation licenses and holds cultivation and production licenses. BaM products include dried flowers, edibles, oils and extracts as well as GPEN Gio cartridges. BaM cannabis strains have won numerous awards, including the 2019 Las Vegas Weekly Bud Bracket, 2016 Las Vegas Hempfest Cup, High Times Top Ten, NorCal Secret Cup, and Emerald Cup.

Please visit www.bodyandmind.com for more information.

original press release

Published by NCV Newswire

NCV Newswire

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