Cash Strikes: GTI, Cansortium


GTI

Inexperienced Thumb Industries Inc.  (OTCQX: GTBIF) introduced that it has closed on a $217 million senior non-brokered non-public placement financing by the issuance of senior secured notes. GTI mentioned it plans to make use of the proceeds to retire its current $105 million senior secured debt due Might 2023 and for basic working capital functions in addition to varied development initiatives.

“Historical past has taught us that the winners in new industries are these with the bottom price of capital and the strongest stability sheets,” mentioned GTI Founder and CEO Ben Kovler. “Our profitable non-brokered providing (gross=web) was supported by members of the administration crew along with a various group of recent and current high-quality, institutional buyers who share in our strategic imaginative and prescient and plan to capitalize on the alternatives forward. This financing represents industry-leading price of capital within the authorized cannabis {industry} and strengthens our stability sheet. This new capital will permit us to concentrate on shareholder worth creation by strategic investments to scale our current operations along with accretive M&A alternatives.”

The Notes have a maturity date of April 30, 2024 and can bear curiosity from the date of problem at 7% every year, payable quarterly, with an possibility, on the discretion of the corporate, to increase an extra 12 months. The financing permits the Firm to borrow an extra $33 million over the following twelve months. The purchasers of the Notes additionally acquired an mixture of 1,459,043 warrants. Every Warrant is exercisable to buy one subordinate voting share of GTI at an train value of $32.68 per share, for a interval of 60 months from the date of problem.

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Cansortium

Cansortium Inc.  (OTCQB: CNTMF) has closed a $71 million Senior Secured Time period Mortgage due April 29, 2025. The corporate plans on utilizing the proceeds to repay convertible debentures that have been due in Might and strengthen the stability sheet. 

“Immediately marks a brand new starting for Cansortium as we now have the monetary flexibility and liquidity that the Firm must proceed rising its engaging asset base,” mentioned Chief Government Officer Robert Beasley. “Proceeds from the Time period Mortgage have been used to fulfill considerably the entire Firm’s current indebtedness, together with repaying $27.1 million of convertible debentures due in Might. These actions have resulted in additional than $40 million of money being added to our stability sheet from the Time period Mortgage and the fairness providing accomplished earlier this month. With a strengthened stability sheet and simplified capital construction, we are actually firmly positioned to execute our development and enlargement initiatives in our core FloridaPennsylvania, and Michigan markets.”

Neal Hochberg, Cansortium’s Chairman of the Board added, “By extending our debt maturities by 4 years and bolstering our liquidity, the Firm can now focus all of its consideration on maximizing worth.”

Mr. Beasley added, “Since taking on as CEO in September 2020 , now we have made dramatic enhancements throughout key facets of our enterprise, significantly in Florida the place now we have considerably elevated cultivation yields, launched new SKUs and form-factors similar to edibles, and expanded cultivation and manufacturing capability to raised provide our 24 operational dispensaries (anticipated to extend to 27 by year-end). Florida stays the only largest limited-license cannabis market within the U.S. and we at the moment have the sixth largest footprint within the state. I’m happy with our crew’s early accomplishments up up to now and sit up for capitalizing on the numerous development alternatives forward.”

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