Auxly Cannabis Group Inc., a leading consumer packaged goods company in the cannabis products market, today announced that it has signed a definitive agreement to amend and restate 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. As first announced by the Company on January 3, 2024, the Credit Facility has been amended pursuant to the Amendment Agreement upon the following 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 a $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 will continue to be supported by a $33 million limited guarantee by Auxly, and a pledge by Auxly of all of its securities of Auxly Leamington.
“We are pleased to have completed the amendment to our credit facility and appreciate the strong support and commitment from our banking partners,” said Chief Financial Officer, Travis Wong. “These amendments provide additional flexibility that allows us to focus on our strategic growth objectives as we maintain our diligent approach to capital allocation.”
About Auxly Cannabis Group Inc.
Auxly is a leading Canadian consumer packaged goods company in the cannabis products market, headquartered in Toronto, Canada. Its 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/.