Green Thumb Industries (CSE: GTII) has secured additional financing. The company this morning announced that it has entered into arrangements for US$217 million in senior non-brokered private placement financing, which is to take place via senior secured notes.
Under the terms of the financing, the notes to be issued will contain a maturity date of April 30, 2024, with the company having an option to extend the maturity at its discretion by 12 months. The debt is to contain an interest rate of 7% per annum, which is payable quarterly.
Notably, the company also holds an option to increase the financing by up to $33 million over the next twelve months. A total of 1.5 million warrants have been issued in connection with the financing, enabling the holder to purchase one subordinate voting share of the company at a price of $32.68 per share for a period of five years from the date of issuance.
Proceeds from the financing are to be used to retire Green Thumb’s existing US$105 million senior secured debt that comes due in May 2023, as well as for general working capital purposes. The company also highlighted “various growth initiatives” as being a possible avenue for the use of funds, with further details not provided.
Green Thumb Industries last traded at $36.60 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
