The Green Organic Dutchman Holdings Ltd. TGOD TGODF declared Friday signing a binding term sheet with Maynbridge Capital Inc. for a senior secured first lien credit facility of up to $41.7 million.
Under the new arrangement, the facility will replace the suggested mortgage loan and the sale and leaseback of its Ancaster Energy Centre.
The facility carries a $26.7 million secured term loan with an 18-month term, and 12 monthly interested only payments followed by 6 monthly payments of principal and interest. The loan has an interest rate of 13% a year.
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The Green Organic Dutchman shall issue 7 million common share purchase warrants to Mayanbridge Capital, with each warrant being exercisable to obtain one common share of the company in the 36 months following the closing of the transaction at a price of CA$1.00 per warrant.
Upon closing of the loan, the company will obtain $26.7 million.
Another $15 million will be available by Maynbridge Capital under the Accordion Loan under the lender’s credit approval and after reaching specific operating and financial milestones.
The Green Organic Dutchman’s shares traded 2.67% higher at 63 cents per share on Friday morning.
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