Entourage Health upsizes credit facility by $20 million via LiUNA

By Mary-Katherine Stinson

Lexington, Ky., Dec. 30 – Entourage Health Corp., formerly WeedMD Inc., upsized its existing credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada with an additional $20 million in non-dilutive funding to be used for general working capital purposes as the company focuses on sustainable profitable growth, according to a company announcement.

The credit facility, which matures in August of 2022, will continue with a 15% interest rate, with an option, at the company’s discretion, to capitalize interest in lieu of cash payments.

The company and LiUNA also agreed to defer certain financial covenants until March 28, from a previous extension that was set to end at the end of 2021.

Entourage has also signed an additional amendment to its senior secured credit facility with Bank of Montreal to modify the terms under which it received up to a $39 million debt financing over a three-year term ending in 2022.

Specifically, the company has secured a temporary bulge facility of $500,000 available for a limited period to be used only for working capital purposes and has reached an agreement to defer certain financial covenants to March 28.

Entourage is the Toronto-based publicly traded parent company of WeedMD Rx Inc. and CannTx Life Sciences Inc., federally licensed producers and distributors of medical cannabis.

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