Vertically integrated infrastructure and cannabis company TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF) revealed Friday that its subsidiary, Jupiter Research, LLC has entered into a $10 million asset-based revolving credit facility with Entrepreneur Growth Capital, LLC.
The original term for the credit facility is set to two years but will continue for successive one-year terms unless concluded by either party at the end of the then-current term.
The Phoenix-based company noted that the borrowings under the credit facility bear interest at prime plus 3.5% and will be secured by Jupiter’s inventory and related property. Furthermore, Jupiter’s current note creditor will subordinate their security interests in Jupiter inventory, accounts receivable and related property when the new facility closes.
“Signing this new credit facility marks a first step in establishing a more normalized capital structure, and also reflects our ability to attain non-dilutive capital as a result of our improved profitability and cash flow generation,” TILT CEO Gary Santo stated. “The facility comes with favorable terms for the cannabis industry and provides us with additional working capital to execute our growth initiatives. The timing is also key as our new cultivation capacity comes online and we take additional brand partners to market across Massachusetts, Pennsylvania and Ohio.”
Price Action
Tilt shares were trading 0.07% lower at 45 cents per share at the time of writing Friday morning.
Photo: Courtesy of Shane Rounce on Unsplash
