- TILT Holdings subsidiary, Jupiter Research, LLC has entered into a new two-year, $10 million revolving credit facility
- Borrowings under the new credit facility will bear interest at Prime plus 3.5 per cent
- The facility will provide TILT with additional working capital
- The credit facility has a two-year initial term and will continue for successive one-year terms unless terminated by either party
- TILT is a combination of leading cannabis companies that deliver products and services to businesses operating in the cannabis industry
- TILT Holdings Inc. (TILT) is unchanged, trading at C$0.56 per share at 1 pm ET
TILT Holdings subsidiary, Jupiter Research, LLC has entered into a new two-year, $10 million revolving credit facility with Entrepreneur Growth Capital, LLC.
Borrowings under the new credit facility will bear interest at Prime plus 3.5 per cent and will be secured by Jupiter’s inventory, accounts receivable and related property.
“Signing this new credit facility marks a first step in establishing a more normalized capital structure, and also reflects our ability to attain non-dilutive capital as a result of our improved profitability and cash flow generation,” said TILT CEO Gary Santo.
“The facility comes with favorable terms for the cannabis industry and provides us with additional working capital to execute our growth initiatives. The timing is also key as our new cultivation capacity comes online and we take additional brand partners to market across Massachusetts, Pennsylvania and Ohio.”
Jupiter’s existing senior and junior note creditors will subordinate their security interests in Jupiter’s inventory, accounts receivable and related property when the new facility closes. The existing note creditors will maintain the priority of their security interests in other Jupiter collateral.
The new credit facility has a two-year initial term and will continue for successive one-year terms unless terminated by either party. The loan terms provide for minimum monthly interest charges, and for borrowing base eligibility requirements, advance rates, fees, events of default and default interest rates that are common features in such facilities.
TILT is a combination of leading cannabis companies that deliver products and services to businesses operating in the cannabis industry.
TILT’s core businesses include Jupiter Research, Commonwealth Alternative Care and Standard Farms.
TILT Holdings Inc. (TILT) is unchanged, trading at C$0.56 per share at 1 pm ET.
