WeedMD Inc (CVE:WMD) (OTCQX:WDDMF) (FSE:4WE), a licensed producer and distributor of medical-grade cannabis, said Thursday that it has modified the terms of a credit facility under which it had secured up to $39 million of debt financing over a three-year term ending in 2022.
On March 29, 2019, WeedMD had arranged a senior secured credit facility which it has now amended to reflect some key changes for the company. Under the terms of the credit agreement amendment, WeedMD said it secured “a deferral of its financial covenants by 12 months to June 30, 2021.”
Similarly, quarterly principal repayments have been rescheduled to commence in the first quarter of 2021. In addition, the company has agreed to a 50 basis point increase in the applicable interest rate margin on the credit facility.
“WeedMD is forging ahead with a robust cultivation platform, a growing portfolio of branded products and a solid distribution network backed by a fortified balance sheet and strength of its non-dilutive, tier-one bank financing,” WeedMD CFO Lincoln Greenidge said in a statement.
“We’re looking ahead into the second half of 2020 and beyond with confidence and financial discipline as we continue carving our profitability path,” he added.
WeedMD Inc is the parent company of WeedMD RX Inc and Starseed Medicinal Inc federally licensed producers of cannabis products for both the medical and adult-use markets. The company owns a 158-acre greenhouse, outdoor cultivation and processing facility in Strathroy, Ontario.
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