Green Thumb Industries Inc. (OTCQX: GTBIF) announced that it has closed on a $217 million senior non-brokered private placement financing through the issuance of senior secured notes. GTI said it plans to use the proceeds to retire its existing $105 million senior secured debt due May 2023 and for general working capital purposes as well as various growth initiatives.
“History has taught us that the winners in new industries are those with the lowest cost of capital and the strongest balance sheets,” said GTI Founder and CEO Ben Kovler. “Our successful non-brokered offering (gross=net) was supported by members of the management team in addition to a diverse group of new and existing high-quality, institutional investors who share in our strategic vision and plan to capitalize on the opportunities ahead. This financing represents industry-leading cost of capital in the legal cannabis industry and strengthens our balance sheet. This new capital will allow us to focus on shareholder value creation through strategic investments to scale our existing operations in addition to accretive M&A opportunities.”
The Notes have a maturity date of April 30, 2024 and will bear interest from the date of issue at 7% per annum, payable quarterly, with an option, at the discretion of the company, to extend an additional 12 months. The financing permits the Company to borrow an additional $33 million over the next twelve months. The purchasers of the Notes also received an aggregate of 1,459,043 warrants. Each Warrant is exercisable to purchase one subordinate voting share of GTI at an exercise price of $32.68 per share, for a period of 60 months from the date of issue.
Cansortium Inc. (OTCQB: CNTMF) has closed a $71 million Senior Secured Term Loan due April 29, 2025. The company plans on using the proceeds to repay convertible debentures that were due in May and strengthen the balance sheet.
“Today marks a new beginning for Cansortium as we now have the financial flexibility and liquidity that the Company needs to continue growing its attractive asset base,” said Chief Executive Officer Robert Beasley. “Proceeds from the Term Loan have been used to satisfy substantially all of the Company’s existing indebtedness, including repaying $27.1 million of convertible debentures due in May. These actions have resulted in more than $40 million of cash being added to our balance sheet from the Term Loan and the equity offering completed earlier this month. With a strengthened balance sheet and simplified capital structure, we are now firmly positioned to execute our growth and expansion initiatives in our core Florida, Pennsylvania, and Michigan markets.”
Neal Hochberg, Cansortium’s Chairman of the Board added, “By extending our debt maturities by four years and bolstering our liquidity, the Company can now focus all of its attention on maximizing value.”
Mr. Beasley added, “Since taking over as CEO in September 2020 , we have made dramatic improvements across key aspects of our business, particularly in Florida where we have significantly increased cultivation yields, introduced new SKUs and form-factors such as edibles, and expanded cultivation and production capacity to better supply our 24 operational dispensaries (expected to increase to 27 by year-end). Florida remains the single largest limited-license cannabis market in the U.S. and we currently have the sixth largest footprint in the state. I am proud of our team’s early accomplishments up to this point and look forward to capitalizing on the many growth opportunities ahead.”