Mr. John Arbuthnot reports
DELTA 9 INCREASES BANK CREDIT FACILITIES TO $22 MILLION
Delta 9 Cannabis Inc. has amended the company's credit facilities with Canadian Western Bank through the addition of new loan segments and amendments to certain existing loan segments. The amendments bring the Company's total Credit Facilities with the Bank to approximately $22 Million and increase the company's cash position by $5.4-million.
"Delta 9 is one of the only cannabis operators in Canada that have been successful at accessing conventional credit facilities with a Tier 1 chartered bank," said Delta 9's chief executive officer, John Arbuthnot. "This additional cash, together with working capital of $24.5-million and $6-million in cash as of June 30, 2020, leave us well-positioned to continue the Company's strategic growth plans and implementation of its business initiatives."
The Company entered into its original credit facilities with the Bank in the amount of $12.0 million on July 24, 2018, which was increased to $18.1 million on August 14, 2019.
The amendments to the Credit Facility represent five additional loan segments each of which is allocated for a different purpose and each with its own terms. The new loan segments bear interest of between 3.45% and 5.99% per year.
"In order to maximize shareholder value over the long term, it was important to us to find a non-dilutive source of capital to help finance our growth," said Mr. Arbuthnot. "The relationship between our Company and the Bank has grown steadily over the last two years since the original financing and these amendments demonstrate the Company's financial strength and operating track record."
About Delta 9 Cannabis Inc.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
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