Auxly Cannabis Group Inc., a leading consumer packaged goods company in the cannabis products market, today announced that it has signed a non-binding term sheet to amend and restate the credit facility (the “Credit Facility”) between its wholly-owned subsidiary Auxly Leamington Inc. and a syndicate of lenders, led by the Bank of Montreal as administrative agent upon the following revised terms:
- Extension of the maturity date by two years until December 31, 2025, with an option for Auxly Leamington to extend the maturity date for an additional year by making $2.5 million principal repayment by December 31, 2025;
- Updated, EBITDA and other financial and operational covenants for Auxly Leamington;
- Increased quarterly principal payments throughout the term; and
- The obligations of Auxly Leamington under the Credit Facility continuing to be supported by a $33 million limited guarantee by Auxly, and a pledge by Auxly of all of its securities of Auxly Leamington.
Auxly and the lenders are working towards a definitive binding amendment to the Credit Facility, although there can be no assurance that a definitive amendment agreement with the lenders will be reached. While Auxly and the lenders work toward definitive documentation, the lenders have provided Auxly with a third interim extension of the maturity date of the Credit Facility to January 31, 2024.
About Auxly Cannabis Group Inc.
Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in Toronto, Canada. Our mission is to help consumers live happier lives through quality cannabis products that they trust and love. Its vision is to be a leader in branded cannabis products that deliver on our consumer promise of quality, safety and efficacy. Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
