Valens Company Sources $40.0 Million Term Loan To Fund Growth
Capital continues to flow into the Canadian cannabis market. The Valens Company (TSX: VLNS) is the latest benefactor of this trend, with the firm this morning announcing that it has secured a term loan for up to $40.0 million.
The term loan comes in the form of a secured non-revolving loan from a private institutional lender. Debt borrowed under the loan will have an interest rate of 10% per annum, which is payable quarterly, with the debt containing a maturity date of December 15, 2023.
The first payment of interest is due at the end of this month.
Valens indicated that the funds will be used to immediately retire a $7.5 million outstanding loan facility held by the company, as well as to fund working capital to enable growth. Tyler Robson, CEO of the company, meanwhile indicated that it will be used to “capitalize on new growth opportunities,” while specifically mentioning its current role in the US.
The Valens Company last traded at $3.53 on the TSX.
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