TORONTO – (BUSINESS WIRE) –Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that it has entered into an 18-month non-revolving loan agreement (the “Loan agreement”) With BJK Holdings Ltd. (“BJK“) For an amount of $ 7.0 million (the”Ready”). Pursuant to the loan agreement, BLK advanced to the Company $ 7.0 million on April 1, 2021 (the “Closing Date”).
The loan is payable in full at the maturity of the loan, 18 months after the closing date, the monthly interest being paid only based on the outstanding balance of the loan, calculated monthly, in arrears. Monthly interest will be calculated at the Royal Bank of Canada’s prime rate plus 1.25%. A one-time installation fee of $ 965,000 is owed to BJK on the closing date. The loan can be repaid in full at any time without penalty.
A portion of the loan proceeds were used to repay all of the Company’s credit facility obligations to Trichome Financial Corp. (“Trichome credit facilityWhich was due January 30, 2022. The total payment for the withdrawal from the Trichome credit facility was approximately $ 4.7 million and includes accrued interest, voluntary prepayment charges and fees. Closing.
“With our positive long-term financial outlook, we are extremely pleased to be able to secure capital which increases our flexibility to expand our business internationally due to improved conditions compared to our agreement. previous loan and, at the same time, repayment date until October 2022 from January 2022 ”, commented Clint Sharples, CEO of Heritage. “In combination with our recent equity financing, we have strengthened our financial position and are ready for the launch of our products in the US market. This new funding strengthens our flexibility to execute our international strategy and enables growth at a controlled but faster pace.
“We have been following Heritage and their Premium 5 subsidiary for some time now and are delighted to become their loan partner as they are well on their way to establishing the company as a leader in cannabis extracts and cannabis extracts. derived from extracts, ”commented BJK’s David Thiessen. “We are confident in their ability to execute their strategy and look forward to supporting them and helping them expand their national presence internationally.”
Heritage will use the proceeds of the loan to repay its existing facility and for general corporate purposes.
About Heritage Cannabis Holdings Corp.
Heritage is a cannabinoid company focused on the production and sale of hemp and cannabis medical and recreational products and services. In Canada, Heritage operates through its subsidiaries Voyage Cannabis Corp. and CannaCure Corporation, both regulated under the Cannabis Act Regulations. Working under these subsidiaries and the Purefarma, Pura Vida, Premium 5, RAD and feelgood. brands, Heritage is focused on extracting and creating derivative products for recreational consumers, as well as formulating cannabis-based medical solutions. In the United States, Heritage operates under Opticann Inc., a Colorado-based oral and topical cannabinoid company with the rights to exclusively sell CBD and CBG products made with the patented VESIsorb® drug delivery system for absorption and delivery. optimized stability. As a parent company, Heritage is focused on providing the resources to its subsidiaries to advance their products or services in order to compete both nationally and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
The Canadian Stock Exchange accepts no responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. . These forward-looking information and forward-looking statements are not representative of historical facts or information or the current state of affairs, but represent solely the beliefs of the company regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain. and beyond the control of the company. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terms such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, ” planned “,” believes “,” plans “,” intends “,” anticipates “or” does not plan “, or” believes “, or variations of these words and expressions or may contain statements that certain actions , events or results “may”, “could”, “would”, “could” or “will be taken”, “will continue”, “will occur” or “will be achieved.” Forward-looking information contained in this document may include, but not limited to, assumptions relating to cash flow and capital resources, as well as expectations related to supply and manufacturing agreements, anticipated company expansion, and joint venture partnerships and partnerships.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements. of the society. be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading “Risks and uncertainties” in the annual management report of the Company for the year ended 31 October 2020 and as of February 26, 2021. Although the Company has attempted to identify material factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as expected, estimated or expected.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, as well as the expectations contained in, the forward-looking information and statements are reasonable, such information and statements should not be relied on unduly, and no assurance or warranty can be taken. be given that such forward-looking information and statements will prove to be correct, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and / or forward-looking statements that are contained or referenced. here, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by this notice.