Healing Co. gets commitment for new $75 million term loan

By William Gullotti

Buffalo, N.Y., Aug. 24 – Healing Co. Inc. closed on a new $75 million credit facility on Aug. 4, according to an 8-K filing with the Securities and Exchange Commission.

The facility is composed of $75 million of term loan commitments, which may be increased to $150 million subject to terms of the agreement.

The company and each of its subsidiaries agreed to secure all facility debts with a first priority lien on substantially all of their assets, including all of the capital stock of the subsidiaries held by the company.

The company paid an upfront fee of $562,500 to the administrative agent at signing and will pay a quarterly facility fee of $12,500.

Term loans funded under the agreement will be in a minimum principal amount of at least $400,000, bear an annual interest rate of 12% and will mature the earlier of 12 months following the final drawdown and a date on which an event of default, as defined in the agreement, occurs.

Proceeds from the facility may be used to acquire assets that are deemed eligible by meeting certain criteria established by an administrative agent.

Borrowings may be voluntarily prepaid in full, but not in part, at the option of the company and prepaid on a mandatory basis on the sale of the assets underlying a particular term loan.

Healing Co. also issued a seven-year warrant to the administrative agent for the purchase of up to 1,300,123 shares of the company’s seed preferred stock at an exercise price of $2.00 per share.

The administrative agent and other facility lenders were not disclosed in the filing.

Previously known as Lake Forest Minerals Inc. and engaged in acquisition, exploration and development of natural resources, Carson City, Nev.-based Healing Co. was renamed and refocused in June 2021 to focus on health and wellness. Company subsidiaries are engaged in direct-to-consumer sales of certain branded cannabidiol oils and adaptogen products including mushroom complexes in the form of capsules.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.