Entourage Health Upsizes Credit Facility With LiUNA Pension Fund For Extra $20M

Entourage Health Corp. (formerly WeedMD Inc.) ENTG ETRGF (FSE:4WE) revealed Friday it has upsized its existing credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada for an extra $20 million in non-dilutive funding.

The credit facility continues to bear an interest rate of 15% with the option, at the company’s discretion, to capitalize interest in lieu of cash payments of interest and is set to mature in August 2022.

It is secured by the assets of Entourage and its subsidiaries, including the company’s production facilities, and contains customary financial and other covenants.  

The Toronto, Canada-based cannabis company noted it plans to use the credit facility for standard working capital activities as it continues to concentrate on sustainable profitable growth.

To achieve profitable growth, Entourage is advancing its cultivation practices – recently purchasing a tissue culture business and presenting new genetics.

“With the recent integration of our renowned tissue culture business and addition of new genetics, our cultivation team is enhancing our Strathroy facility using the latest science-based plant performance data, and executing on our promise to meet evolving consumer and patient preferences with premium products,” George Scorsis, interim CEO and Executive Chairman of Entourage stated. “With our enhanced propagation techniques and upgraded suite of products, we are setting a clear path to reaching our profitability goals in late 2022."

"This added support from our trusted partner and strategic investor, LiUNA Pension Fund, provides us with significant non-dilutive financing which will enhance our liquidity position and provide additional working capital to drive sales and pursue targeted growth initiatives," he added.

Amendment To Credit Facility With Bank Of Montreal

Entourage also confirmed Friday it has signed an additional amendment to its senior secured credit facility entered into on March 29, 2019 between the company and Bank of Montreal. The latest amendments to the senior credit facility modify the terms under which Entourage secured up to $39 million of debt financing over a three-year term ending in 2022.

Under the terms of the amendment, the company secured a temporary bulge facility of $500,000 available for a limited period of time and only to be used for working capital purposes.

More recent news from Entourage:

Entourage Health Posts $14.9 Million Record Revenue In Q3 Following Rebrand From WeedMD

Entourage Health Corp. Formerly WeedMD Starts Trading Under New Ticker Symbol

Price Action: Entourage’s shares closed Thursday market session 8.13% higher at $0.07 per share.

Related Link: 14 Founder-Friendly Investment Firms Pioneering The Cannabis Space

Photo: Courtesy of CRYSTALWEED cannabis on Unsplash