Auxly unit enters non-binding term sheet for credit facility extension

Chicago, Jan. 3 – Auxly Cannabis Group Inc.’s wholly owned subsidiary Auxly Leamington Inc. entered into a non-binding term sheet for an up to three-year extension on its credit facility, according to a press release.

While details are being worked out, the company also obtained a third interim extension to Jan. 31.

The company is working out terms with its syndicate of lenders, led by Bank of Montreal as administrative agent.

The term sheet posits a two-year extension of the maturity date, to Dec. 31, 2025. Under the term sheet, there would be an optional one-year extension if the company makes a $2.5 million principal repayment by the original maturity date.

Additionally, the EBITDA, financial and operational covenants would be updated and amortization payments would be increased throughout the term of the loan.

The obligations of Auxly Leamington under the credit facility would continue to be supported by a $33 million limited guarantee by Auxly, and a pledge by Auxly of all of its securities of Auxly Leamington.

Auxly is a cannabis company based in Vancouver, B.C.

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