Zenabis Global modifies C$60 million one-year revolving credit facility

Chicago, March 1 – Zenabis Global Inc. announced modifications to the C$60 million one-year revolving credit facility that was announced in mid-January, according to a press release.

The time the company has to satisfy the conditions for the first draw on the facility has been extended to June 30.

Also, the requirement for the company to issue common shares as a partial commitment fee has been replaced by the company agreeing to increase the cash commitment fee.

Additionally, the termination fee if the company terminates the credit agreement has been changed to a sliding scale ranging from 4% to 0%. Initially, the termination fee was 2%.

Echelon Capital Markets is the financial adviser for the facility.

As previously reported, interest on the facility accrues at the greater of 10% and the Toronto-Dominion Bank 's prime rate plus 755 basis points.

The proceeds from the financing are to be used to repay the company's 14% secured debenture, which is held by an affiliate of Sundial Growers, and for general corporate purposes.

Based in Vancouver, B.C., Zenabis is a Canadian licensed cannabis cultivator of medical and recreational cannabis.

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