Aleafia Health Secures $12 Million Term Loan, $7 Million Receivables Credit Facility

Aleafia Health (TSX: AH) this morning did some juggling of its outstanding debt as a means to keep the lights on for a little longer. The firm has secured an additional credit facility, for proceeds of up to $19.0 million, while also extending other debt.

The latest funding for the company is divided between a term loan of $12.0 million, which the firm expects to fully draw immediately, and a $7.0 million receivables facility. The latter is exoected to be drawn down in January 2022, with additional draw downs occurring as receivables increase for the firm.

The debt currently is set to have a maturity date of December 2023, while interest rate is “in-line” with a credit facility drawn in August 2021, which sat at 12%. Further, the debt is secured by the firms two production facilities in Ontario.

Proceeds from the credit facility are to be used to repay $6.0 million on a currently outstanding senior secured credit facility, leaving an estimated $4.0 million in principal due on that debt, as well as to fund working capital. It appears that the debt repayment was part of an arrangement to extend the maturity of the outstanding credit facility from August 2022 to December 2023.

Aleafia Health last traded at $0.15 on the TSX.


Information for this briefing was found via Sedar and Aleafia Health. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Aleafia Health Reports Q1 2020 Revenues of $14.6 Million, Net Loss of $6.2 Million

Aleafia Health (TSX: ALEF) this morning reported its first quarter 2020 financial results, reporting net...

Wednesday, May 13, 2020, 08:50:29 AM

Aleafia Health Receives Cultivation License from Health Canada

Aleafia Health Inc (TSX: ALEF), through its wholly-owned subsidiary, has been granted a Health Canada...

Tuesday, March 17, 2020, 09:00:00 AM

Aleafia Announces $13.0 Million Bought Deal Financing

Aleafia Health (TSX: ALEF) is the latest firm within the cannabis space to conduct a...

Monday, May 11, 2020, 08:22:42 AM

Aleafia Health Produces 10,300 KG of Cannabis on 26 Acre Outdoor Harvest

Aleafia Health (TSX: ALEF) announced its outdoor harvest yields this morning, identifying that they had...

Monday, November 11, 2019, 09:12:43 AM

Aleafia Health To Repay $25.0 Million In Convertible Debt Due In February

Aleafia Health (TSX: AH) this morning issued a brief update, indicating that the company is...

Tuesday, January 5, 2021, 09:11:39 AM