Business
GTEC Cannabis Co. Closes $4 Million Debt Financing and Repays MMCAP Convertible Debenture
(via TheNewswire) Kelowna, BC - TheNewswire - June 9, 2020 - GTEC Holdings Ltd. (TSX...
About this update from Avant Brands Inc
[{"type":"text","content":"GTEC Cannabis Co. Closes $4 Million Debt Financing and Repays MMCAP Convertible Debenture(via TheNewswire)\n\n \nKelowna, BC - TheNewswire - June 9, 2020 - GTEC Holdings Ltd. (TSXV:GTEC) (OTC:GGTTF) (FRA:1BUP) (\"GTEC\", the \"Company\" or \"GTEC Cannabis Co.\") is pleased to announce that the Company has closed a non-brokered senior secured debt financing (the \"Financing\") of CAD $3,950,000 with NFS Leasing Canada, Ltd. (\"NFS\"). Proceeds from the Financing will be used by GTEC to repay existing senior secured convertible debenture (the \"MMCAP Loan Repayment\") and to reinforce the future growth of the Company.\n\n \n \n\"In these dynamic and challenging times, we are pleased to settle our maturing debt obligations to MMCAP. We would like to thank MMCAP for supporting the growth of our organization from the outset,\" said Norton Singhavon, Founder and Chief Executive Officer of GTEC. \"The NFS financing will allow us to redeploy our cash-flow from operations back into the Company, further fostering our trajectory of growth. We look forward to building our relationship with NFS as we continue to execute on our strategy to become a leading producer of highly-sought after cannabis products.\"\n\n \n \n\"At NFS Leasing we can appreciate the steps that GTEC is taking to advance their opportunity for rapid growth,\" said David Denniss, Vice President Business Development, NFS Leasing, Canada. \"We are pleased to provide a solution to assist in their next phase of growth and look forward to a long-term relationship and continued success.\" \n\n \n \nMMCAP Loan Repayment\n\n \n \nAs part of the Financing, GTEC has completed a payout of its existing senior secured convertible debenture with MMCAP Canadian Fund LP (the \"MMCAP Debenture\"), which had a principal balance of $3.7 million maturing on June 11, 2020. The MMCAP Debenture, including the principal balance and any accrued interest was fully repaid on June 8, 2020.\n\n \n \nNew Debt Facility Terms\n\n \n \nThe Financing was completed pursuant to a promissory note (the \"Note\") providing for a senior secured loan in the amount of $3,950,000 for a term of 36 months.\n\n \n \nInterest-only payments are required for the first year, with the initial payment commencing on July 1, 2020 and amortization payments towards the principal balance commence in year two until the end of the ...