Pure Global Cannabis (TSXV: PURE) has secured additional funding in the form of two secured mortgages on their property. Additionally, the firm has also announced a private placement for up to $2.1 million to provide the company with new working capital.
The two mortgages entered into by the of Pure Cannabis will see the company source a total of $7.25 million in funding. The first mortgage, for a total of $7.0 million, is from a non-bank private lender. No terms were provided in relation to the mortgages, aside from the fact that they will be secured against Pure’s two industrial warehouses located in Brampton, Ontario.
Funds from the financings will largely be used to refinance existing debt incurred by the company, with a total of $5.0 million being put towards this purpose. $932,500 will be put towards working capital, while $682,500 will be put towards an interest payment reserve and $250,000 will be used as holdback for building remedial work. The remaining portion, or approximately $385,000, will be put towards fees, and transactional and legal costs.
The financing concurrently announced will see units sold at a price of $0.056 each, containing one common share and one half warrant, with an exercise price of $0.1225 and an expiry of 30 months from the date of issuance. The financing is expected to close by February 14.
Pure Global Cannabis last traded at $0.07 on the TSX Venture.
Information for this briefing was found via Sedar and Pure Global Cannabis. 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.
