Ayr Strategies (CSE: AYR.A) has secured a non-dilutive financing to the tune of US$75 million via an offering led by Canaccord Genuity. The company this morning announced that it has received a commitment from a syndicate of lenders for the funding via senior secured notes that pay interest at a rate of 12.5% per annum.
The notes, which contain a further $25 million over-allotment option, will see the 12.5% interest rate paid semi-annually, while the notes have a maturity 48 months after closing. Certain restrictions related to debt, asset sales, dividends and other distributions exist in connection with the debt, while the funds are secured via a first priority security interest on certain assets held by Ayr and its subsidiaries.
Proceeds from the offering, along with proceeds from the exercise of currently in-the-money warrants, are to be used to fund the cash portion of pending acquisitions in Pennsylvania, Arizona and Ohio. The funds will also be used to cover additional capital expenditures required for the completion of facilities within these states.
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Upon the completion of the required four month hold period on the notes, the notes are expected to be exchange-listed on the CSE.
The financing is expected to close by the end of next week. No equity is to be issued in connection with the financing.
Ayr Strategies last traded at $27.40 on the CSE.
Information for this briefing was found via Sedar and Ayr Strategies. The author has no securities or 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.
