CAN (ON): Cronos secures $40M in debt for domestic capacity expansion
Under the commitment letter, Romspen has agreed to provide the $40 million senior secured facility to the company’s wholly-owned licensed producer, Peace Naturals Project Inc. The loan is secured by a first mortgage on the real estate of each of Peace and In The Zone. ITZ, Hortican Inc. and the company are also guarantors of the loan. Under the loan, the company retains its ability to enter into equipment financing arrangements.
The loan will be made available in multiple advances which are expected to begin in September 2017. Advances will be subject to ongoing conditions, including Romspen’s approval of construction progress. The loan bears interest at a rate of 12% per annum (interest only accrues on advances made), has a 2 year term with a one-year extension option, and is prepayable on one-month’s notice.
“Given the speed at which we anticipate payback of investment in the New Peace Facility, we prioritized accessing the debt markets to fund this domestic expansion. We always look for ways to enhance shareholder value and we’re pleased to be able to work with Romspen again to deliver that value,” said Mike Gorenstein, CEO of Cronos.
For more information:
Cronos Group
76 Stafford Street, Suite 302
Toronto, Ontario M6J 2S1
(416) 504-0004
Info@TheCronosGroup.com
thecronosgroup.com