The Very Good Food Company Inc. (TSXV: VERY) this morning announced the closing of a loan agreement for a senior secured credit facility with Waygar Capital, as agent for Ninepoint Canadian Senior Debt Master Fund. The agreement sees the company take a $70 million credit facility from the lender.
The credit facility consists of a $50 million senior secured asset-backed term loan and a $20 million revolving line of credit, all of which is due on June 7, 2023 and contains a one-year extension option. All amounts drawn from the credit facility will be subject to a 9.95% annual interest rate.
In connection with the loan agreement, The Very Good Food Company will also issue 225,000 common share purchase warrants to Waygar Capital. Each warrant is exercisable for one common share at a price of $5.62 per share within 5 years from issuance.
The company intends to use the proceeds from the loan agreement on working capital, general corporate purposes, acquisitions, and equipment procurement support.
The Very Good Food Company Inc. last traded at $4.52 on the TSX Venture.
Information for this briefing was found via Sedar and The Very Good Food Company. 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.