Ms. Jenn Hepburn reports
EMERALD HEALTH THERAPEUTICS PURE SUNFARMS JV EXPANDS CREDIT FACILITY WITH EXISTING LENDER BY UP TO $59M AND COMPLETES ADDITIONAL $8M FINANCING
Emerald Health Therapeutics Inc.'s Pure Sunfarms (PSF) joint venture has finalized the expansion of its credit facility with its existing lender to $59-million, including accordion provisions of $22.5-million. The expanded credit facility consists of a $7.5-million revolving operating loan and a $10-million term loan, in addition to its existing $19-million term loan. The new term loan is specifically designated for the 1.1-million-square-foot Delta 2 greenhouse while the existing term loan is specifically designated for the 1.1-million-square-foot Delta 3 greenhouse facility.
The $7.5-million revolver and the $10-million new term loan include an accordion provision that allows Pure Sunfarms to request additional lender commitments of up to an additional $7.5-million and $15-million, respectively, subject to an additional lender entering the syndicate on or before May 30, 2020. Each of the components of the credit facility, including the existing term loan, matures on Feb. 7, 2022.
As part of this transaction, Village Farms International Inc. has completed an additional investment in PSF of $8-million, which reduces Emerald's equity position in Pure Sunfarms by 1.3 per cent to 41.3 per cent. Emerald continues to hold three of six seats on Pure Sunfarms' board of directors.
About Emerald Health Therapeutics Inc.
Emerald Health Therapeutics is committed to cutting-edge cannabis science to create new consumer experiences with distinct recreational, medical and wellness-oriented cannabis and non-cannabis products.
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