Cansortium Inc (CSE: TIUM.u) has entered into a senior secured term loan facility. The term loan, set at US $ 71 million, was entered into through a syndicate of US-based institutional lenders.
The $ 71 million term loan contains a maturity date of April 29, 2025, while bearing interest at a rate of 13% per annum. Plus, the debt comes with 18 months of call protection. The company is also able to increase the term loan to a maximum of $ 20 million, subject to certain conditions.
The financing of the loan will be in two installments. The first will see a $ 50 million tranche issued with an initial issue discount of 3%. The tranche includes 12.5 million warrants with an undisclosed maturity. The second tranche consists of $ 21 million, which will benefit from an initial issue discount of 7% and no warrant component.
The proceeds of the loan facility are to be used to repay all of the company’s existing debt, which includes $ 27.1 million in convertible debentures maturing in May. The company is expected to have approximately $ 40 million in cash once all existing debts are paid off.
Cansortium Inc last traded at US $ 1.20 on the CSE.
The information for this briefing was found through Sedar and Cansortium Inc. The author has no title or affiliation with this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author does not hold any license.
As the founder of Deep diving, Jay is focused on all aspects of the business. This includes operations, as well as being the lead writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay writes freelance for a number of companies and has been posted on Stockhouse.com and CannaInvestor Magazine among others.