[[{“value”:”
Body and Mind Inc. BAMM, BMMJ, a multi-state cannabis company, announced a new credit facility with Bengal Catalyst Fund, LP, securing up to $2.3 million to support its U.S. expansion efforts. The financing aims to help Body and Mind build out key dispensary projects in Illinois and New Jersey, while also allowing the company to focus on optimizing its asset base and enhancing shareholder value.
“The credit facility agreement gives the company flexibility to accomplish its near-term objectives of rationalizing its asset base and protecting shareholder value, which includes supporting the development of its in-process dispensary projects in Illinois and New Jersey,” stated Michael Mills, CEO of Body and Mind. “Additionally, when we sold our Ohio dispensary, we negotiated a US$2.5 million contingent payment should a second retail license be awarded and subsequently opened.”
Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you’re serious about the business.
Credit Facility Terms
The new credit facility from Bengal Catalyst Fund carries an 18% annual interest rate and is available for up to one year with a maturity date of two years from the first draw. Body and Mind has also amended its existing convertible debentures with Bengal and related funds, adjusting the interest rate to 15%, paid half in cash and half in kind.
Previously unsecured, these debentures are now secured alongside the new credit facility, giving Bengal priority on any repayment.
Read Also: Body and Mind Narrows Loss By 30% YoY In Q3, Doubles Down On Streamlining Operations
Regulatory And Financial Context
As a related party transaction under Multilateral Instrument 61-101, the company secured exemptions from formal valuation and minority approval. Body and Mind’s independent board members unanimously supported the transaction, deeming it essential for the company’s financial position and future growth strategy in the competitive U.S. cannabis market.
Read Next: New Laws Could Unleash $1.7B Demand For Cannabis Loans, This Real Estate Stock Is Set To Capitalize
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
“}]] The financing aims to help Body & Mind build out key dispensary projects, focusing on its asset base, and enhancing shareholder value. Read More