Cansortium Inc (CSE: TIUM.u) has completed a senior secured term loan facility. The term loan, pegged at US$71 million, was conducted via a syndicate of US-based institutional lenders.
The $71 million term loan contains a due date of April 29, 2025, while bearing interest at a rate of 13% per annum. Furthermore, the debt has 18 months of call protection baked into it. The company is also able to increase the term loan by up to $20 million subject to certain conditions.
The funding of the loan is to take place in two tranches. The first will see a $50 million tranche issued at an original issue discount of 3%. Included in the tranche is 12.5 million warrants with an undisclosed expiry. The second tranche meanwhile consists of $21 million, which will see an original issue discount of 7% and no warrant component.
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Proceeds from the loan facility are to be used to satisfy all of the firms existing debt, which includes $27.1 million in convertible debentures that come due in May. The company is expected to have a cash position of approximately $40 million once all existing debt is paid off.
Cansortium Inc last traded at US$1.20 on the CSE.
Information for this briefing was found via Sedar and Cansortium Inc. 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.
