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Levitee Labs enters new credit facility up to $12 million with RiverFort
By Mary-Katherine Stinson
Lexington, Ky., Oct. 21 – Levitee Labs Inc. has announced it has entered a new credit facility for a secured loan from RiverFort Global Opportunities PCC Ltd. and will make an initial tranche 1 drawdown of $2.5 million out of the $12 million facility, according to a company release.
RiverFort Global Capital Ltd. was the arranger on the deal.
This tranche 1 drawdown will mature Oct. 20, 2023 with an annual 10% interest rate.
Subsequent advances on the loan will be subject to a 20% interest rate to be applied to the term between the advance date and maturity.
The facility provides 25% warrant coverage for each drawdown or 25% of the principal divided by the company’s share price at the time.
Exercise prices of the warrant are 150% of the company’s share price at the time of the drawdown and warrants will expire three years after the date granted.
As part of the loan agreement, Levitee will issue 1,378,778 warrants to RiverFort entitling RiverFort to purchase one common share of company stock at $0.68 per share for a three-year period.
RiverFort has the option to convert up to 50% of the principal amount of the loan into shares at the fixed conversion rate of 125% of the market price at drawdown. The fixed conversion rate is $0.544 per share.
Every 30 days RiverFort may request and require that the accrued interest be converted to shares at the private placement price equal to 90% of the last closing price on the prior day to the conversion notice.
The proceeds will be used to support future acquisitions of several clinical, pharmaceutical, and mental health assets and for working capital.
Levitee Labs is a multidisciplinary integrative wellness company based in Vancouver.
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