Indus Holdings (CSE: INDS) is the latest company to enter into a short term, high interest loan as capital runs thin in the cannabis space. The company announced this morning that it had managed secure a loan for a total amount of US$1.5 million, which is coming from a number of lenders which includes company insiders.
The loan itself consists of a US$1.275 million being supplied by Hadron Capital, a firm located in London, UK. The remaining $0.225 million is being supplied equally by three executives from Indus’ leadership team, which include directors Arthur Maxwell, William Anton, and Sam Tramiel. The terms of the loan agreement include an interest rate of 20% per annum, and must be repaid in 120 days of demand, or upon additional financing occurring.
As part of the terms of the short term loan, CEO Robert Weakley is required to vote his shares as agreed by a majority of the firms board of directors. Weakley currently holds 85% of the voting power of the company due to super voting shares held by him.
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Indus is currently in discussions for a more significant replacement financing.
The funds from the short term financing are intended to be used for the completion of its greenhouse project in California and for positioning the firm for “self-sustainability.”
Indus Holdings last traded at $1.10 on the CSE.
Information for this briefing was found via Sedar and Indus Holdings. 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.
