Cansortium closes $ 71 million senior secured debt financing

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.

Previous IFC proposes to invest $ 100 million in secured debt of Hero Fincorp
Next High Tide Announces Elimination of Senior Secured Debt and Addition to AdvisorShares Pure Cannabis ETF (NYSE: YOLO)

No Comment

Leave a reply

Your email address will not be published.