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.
Why Public Cannabis CFOs Need to Breakdown and Segment Their Accounts Receivables
Limited Disclosures Risk Signaling Poor Financial Health to Analysts and Investors The ‘accounts receivable to...