- Vext (VEXT) has announced a US$22.2M credit facility with a California-based lender
- The company will allocate the funds toward capital expenditures, general and administrative expenses, potential acquisitions, and to refinancing or retiring current secured debt
- Canaccord Genuity acted as a financial advisor regarding the facility
- Vext Science is a U.S.-based cannabinoid products company
- Vext (VEXT) is down by 2.22 per cent trading at $0.44 per share
Vext (VEXT) has announced a US$22.2M credit facility with a California-based lender.
The facility is comprised of two term loans:
- The first is a US$17.185M 20-year first lien secured term loan with interest of WSJ Prime + 2.75 per cent and a floor price of 6.25 per cent
- The second is a US$5M five-year second lien secured term loan bearing interest of WSJ Prime + 2.75 per cent with a floor price of 6.25 per cent
The company will use the funds for capital expenditures, general and administrative expenses, working capital for potential acquisitions, and to refinance or retire current secured debt averaging a rate of 10 per cent.
Canaccord Genuity acted as a financial advisor regarding the facility.
“This credit facility both lowers Vext’s cost of capital and gives us additional flexibility as we continue to execute our growth plans in Arizona and Ohio,” stated Eric Offenberger, CEO of Vext. “The next 12 months are expected to be a period of growth for Vext. With a solid balance sheet, ongoing free cash flow, and access to relatively low-cost, non-dilutive capital, we are in a position of strength to continue generating growth and profitability for shareholders.”
Vext Science is a U.S.-based cannabinoid products company manufacturing THC cartridges, concentrates, edibles, accessories and hemp-based products.
Vext (VEXT) is down by 2.22 per cent trading at $0.44 per share as of 9:41 am EST.
