- Delta 9 Cannabis (DN) has negotiated a number of amendments to its credit facilities with Canadian Western Bank
- The changes include amendments to existing loan segments, as well as the addition of new loan segments
- Delta 9’s total credit facilities with the Bank are now approximately C$22 million, raising its cash position by $5.4 million
- The new loan segments will bear interest of between 3.45 per cent and 5.99 per cent per year
- Delta 9 Cannabis (DN) is down 1.85 per cent and is currently trading at $0.53 per share
Delta 9 Cannabis (DN) has negotiated a number of amendments to its credit facilities with Canadian Western Bank.
The company first entered into credit facilities with the Bank on July 24, 2018, for an initial amount of C$12 million. On August 14 of the following year, Delta 9 increased the amount to $18.1 million.
The latest changes include amendments to existing loan segments, as well as the addition of five new loan segments. Each of the additional loan segments is allocated for a different purpose, and has its own separate terms.
The new loan segments will bear interest of between 3.45 per cent and 5.99 per cent per year.
In all, the new amendments increase the company’s total credit facilities with the Bank to approximately $22 million. This also improves Delta 9’s cash position, increasing it by $5.4 million.
Delta 9 Cannabis’ CEO, John Arbuthnot, commented on the company’s amendments to its credit facilities.
“Delta 9 is one of the only cannabis operators in Canada that have been successful at accessing conventional credit facilities with a Tier 1 chartered bank.
“This additional cash, together with working capital of $24.5 million and $6.0 million in cash as of June 30, 2020, leave us well-positioned to continue the company’s strategic growth plans and implementation of its business initiatives.
“In order to maximise shareholder value over the long term, it was important to us to find a non-dilutive source of capital to help finance our growth.
“The relationship between our company and the Bank has grown steadily over the last two years since the original financing and these amendments demonstrate the company’s financial strength and operating track record,” he said.
Delta 9 Cannabis (DN) is down 1.85 per cent and is trading at 53 cents per share at 2:30pm EDT.