Canopy Rivers Joint Venture Secures CA$10M Of Secured Debt

Cannabis oriented venture capital company, Canopy Rivers Inc. RIV CNPOF confirmed Thursday its Ontario-based joint venture PharmHouse revised its syndicated credit facility with the Bank of Montreal BMO, the Canadian Imperial Bank of Commerce CM and Concentra Bank.

The new terms secure PharmHouse with extra CA$10 million (US$7.13 million) of secured debt financing, added to the previously announced CA$80 million. The original bank debt facility was concluded in January 2019, setting a rate of interest that should average in the mid-to-high 5% per year over the course of three years.

Other changes in the deal also included postponing of the date that demanded principal repayments for one year to March 31, 2021, an increase to interest rate spreads of 25 points, and an increase to the company’s defined guarantee by CA$10 million.

"This incremental debt financing, which comes at a time of significant constraint in capital markets generally, is a testament to the momentum that our joint venture has been building for the past two years," Canopy CFO Eddie Lucarelli said in a statement.

Lucarelli said the announcement signifies "the growing confidence that leading financial institutions have in the quality of the cultivation platform that has been built," and PharmHouse's long-term role in the global cannabis sector."

Canopy River’s shares closed Wednesday’s market session 5.93% lower at 52 cents per share.

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