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Avicanna Enters into $5M Revolving Credit Facility with Inmobiliaria Bondue

December 27, 2019, 08:52 AM
Filed Under: Cannabis

Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce that it has entered into a credit facility (the "Credit Facility") with Inmobiliaria Bondue S.A.S. ("Bondue") pursuant to which Avicanna will be entitled to borrow up to USD$5,000,000.

Advances made under the Credit Facility will bear interest at a rate of 8.0% per annum. The Credit Facility is unsecured and is repayable upon a default by Avicanna or the demand of Bondue. The Credit Facility is intended to be used for general working capital purposes.

Bondue, a "related party" for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), is a party to the Credit Facility and the execution of the associated loan documentation is considered a "related party transaction" for the purposes of MI 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 and the minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101 as the fair market value of the transaction, insofar as it involves related parties, is not more than 25% of the Company's market capitalization.

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