The Valens Company (TSX: VLNS) has obtained up to $40 million in secured debt financing as of this morning. The syndicated facility was lead by both of CIBC and ATB Financial, with both firms acting as co-lead arranger.
Details were slim on the debt being provided, however what is known is that the debt will see $20 million take the form of a secured term loan, while an additional $20 million is in the form of a secured revolving loan. An accordion feature is also present that could potentially increase the total funding by an additional $10 million.
The debt is for a period of three years, and is contains first ranking security over all of the companies assets. What is not known however is the interest rate that the financing has been provided at.
Proceeds from the financing are expected to be used to strengthen Valens’ balance sheet, including “gaining access to new domestic and global opportunities to increase shareholder value.”
The Valens Company last traded at $2.65 on the TSX.
Information for this briefing was found via Sedar and The Valens Company. 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.
