Inc () (OTCMKTS:EURPF) has secured a credit facility of up to C$2.5 million (around €1.7 million) to further its European expansion plans, it revealed on Monday.
The Toronto-based group has struck a definitive financing deal with European Equity Group - an international merchant bank mainly focused on growth-oriented small-cap companies.
READ: EuroLife Brands acquires global rights to portfolio of CBD-infused food products in 75 jurisdictions
"We have secured favorable credit terms with the European Equity Group as we focus on our goal of becoming a vertically integrated cannabis company operating in the hemp, CBD and health & wellness sectors," said Shawn Moniz, chief executive of EuroLife.
He said the facility meant that EuroLife had "access to sufficient and timely capital" to execute on its strategy for this year and 2021 and maximize shareholder value for the "foreseeable future".
EuroLife can request up to C$100,00 a month in exchange for units in the firm.
Each unit consists of shares and share purchase warrants. The former may be issued at a maximum of 10% discount to the 20-day VWAP (volume-weighted average price), while the warrants may be issued at a 50% premium to the units.
Dresden hemp deal
Last year was a busy one for EuroLife. In December, it announced a letter of intent (LOI) to acquire a 20% interest in an industrial hemp cultivation near Dresden, Germany, expected to be finalized this first quarter. It will see the partners aiming to maximize the value of 110,000 kilograms of existing hemp biomass.
Also in 2019, Derek Ivany, chairman of EuroLife's advisory board entered into an agreement with JJ Wolf Investments Ltd, a merchant banking and advisory firm, tasked to establish a foothold within the premium CBD (cannabidiol) markets in Europe on behalf of EuroLife.
Last week, EuroLife told shareholders it had acquired the global rights to CBD food products in over 75 jurisdictions, bolstering its portfolio of CBD products to include hot sauce, olive oils and other related foodstuffs.
"Our first priority is to successfully launch within the European Union and then move to other friendly CBD jurisdictions,” CEO Moniz said in a statement. “We are working towards facilitating a favorable distribution setup as we prepare to take our products to market."
Shares dropped 20% to stand at C$0.040 in Canada.
Contact the author at [email protected]
