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Heritage Cannabis Announces Additional Funds and Improved Terms to $7.0 Million Senior Secured Term Loan Agreement with BJK Holdings Ltd.
Heritage Cannabis Announces Additional Funds and Improved Terms to $7.0 Million Senior Secured Term Loan Agreement with BJK Holdings Ltd..
About this update from Trees Corporation
[{"type":"text","content":"\nHeritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that it has entered into an amended non-revolving loan agreement (the “Amended Loan Agreement”) with BJK Holdings Ltd. (“BJK”), improving the terms of its existing loan with BJK entered into on March 29, 2021, and further supporting its growing business.\n\nUnder the terms of the Amended Loan Agreement, the original loan amount of $7.0 million has been increased to $7.175 million, and its maturity date was extended from September 29, 2022 to February 1, 2023 (the “Increased Initial Loan”). In connection with this Increased Initial Loan, the Company paid a one-time extension fee of $175,000 to BJK on October 12, 2021 (the “Closing Date”).\n\nAdditionally, pursuant to the Amended Loan Agreement, BJK advanced $2.6 million to the Company on the Closing Date, at the Royal Bank of Canada prime lending rate plus 1.25%, adjusted automatically with each quoted or published change in rate, until the entire Loan is repaid on February 1, 2023 (the “Additional Loan”). This Additional Loan was advanced to help fund the Company’s capital asset acquisitions and general corporate purposes.\n\nTo further support the Company’s operations and growth, a revolving line of credit (the “Line of Credit”) has been established, up to a maximum of $5.0 million, with an interest rate of 18% per annum, calculated daily and payable monthly.\n\nIn total, through the Increased Initial Loan, the Additional Loan, and the Line of Credit (collectively, the “Loan”), the Company has access to a total of $14.775 million through its Amended Loan Agreement with BJK. Accordingly, on the Closing Date, the Company granted to BJK a promissory note in the principal amount of $14.775 million together with interest, to represent the amount to be repaid on or before February 1, 2023. If the Company repays the Loan in its entirety on or before October 1, 2022, BJK will repay the Extension Fee to the Company.\n\nFurthermore, in connection with this Amended Loan Agreement, the Company has also granted BJK 10.0 million warrants at an exercise price of $0.25 per share for a period of 24 months.\n\n“We are very pleased to have secured this additional ca...