- Fire & Flower Holdings Corp. (FAF) has signed an $11 million loan agreement and a subscription agreement for a $5 million private placement
- ACT will loan the $11 million to FAF with an interest rate of 11 per cent each year
- ACT will also subscribe for roughly three million FAF common shares for $1.64798 each to raise the $5 million
- These agreements are in connection with an amendment agreement between the two companies for FAF’s Series C common shares
- Fire & Flower Holdings Corp. (FAF) is down 8.65 per cent and is trading at $1.90 per share as of 2:15 p.m. ET
Adult-use cannabis retailer Fire & Flower Holdings (FAF) has signed an $11 million loan agreement and an agreement for a $5 million private placement.
ACT will loan the $11 million to FAF with an interest rate of 11 per cent each year which can be paid quarterly. For the first six months of the term of the loan, FAF can increase the principal amount by the total accrued interest in light of paying said interest to ACT.
The loan matures on December 31, 2023, and ACT will have priority security on all the assets of FAF and its subsidiaries.
ACT and FAF have agreed to complete a private placement for the subscription agreement. ACT will subscribe to roughly three million FAF common shares for $1.64798 each to raise the $5 million.
FAF is entitled to terminate the subscription agreement and sign another agreement with respect to an unsolicited superior proposal, in which case the loan would be due immediately.
These agreements are in connection with an amendment agreement between the two companies for FAF’s Series C common shares.
Fire & Flower Holdings Corp. (FAF) is down 8.65 per cent and is trading at $1.90 per share as of 2:15 p.m. ET.