Upon closing of the facility, the Ontario-based cannabis company will be able to draw $10 million
The Green Organic Dutchman Holdings Ltd () (OTCQX:TGODF) announced Wednesday that it has entered into a $30 million secured revolving credit facility with a private lender.
The company said the facility, secured on accounts receivable and inventory with a second lien over the company's other assets, has an initial term of one year and is subject to renewal for up to an additional year.
Upon closing, TGOD will be able to draw $10 million. The remaining $20 million will become available as cannabis company ramps up its operations and an additional borrowing base becomes available from inventory and accounts receivable generated from operations.
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The Ontario-based company said its existing senior lender has also agreed to advance an incremental $5 million on the company's accordion facility, pending the amendment of the existing credit agreement.
In conjunction with the closing of the facility and the advance on the accordion facility, TGOD said it will grant to the private lender and the senior lender 3 million warrants to purchase common shares and 1.5 million warrants, respectively.
The warrants will have an exercise price of $0.39 and expire in three years. The facility is expected to close by April 20.
Established by Dutch founders, TGOD grows organic cannabis in high-technology, eco-friendly and sustainable facilities. The cannabis is grown naturally in Canada without synthetic pesticides, herbicides or fertilizers and is wrapped in eco-friendly packaging.
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