Body And Mind Cannabis Co. Closes $11.1M Debt Financing, Plans To Ramp Up Growth Initiatives

Body And Mind Cannabis Co. Closes $11.1M Debt Financing, Plans To Ramp Up Growth Initiatives

The multi-state cannabis operator, Body and Mind Inc. BAMM BMMJ recently borrowed some $11.1 million from FocusGrowth Asset Management, LP to fund its future growth initiatives.

The Vancouver-based company disclosed Tuesday that it can immediately draw the initial term loan of $6.67 million under the debt financing with related entities to FocusGrowth Asset. A chunk of that money - $6 million – is going to the company.

Body and Mind can draw on the delayed draw term loan of US$4.44 million by the end of 2021, of which $4 million will go to the company.

The loan, which matures in four years, carries interest at a rate of 13% annually and is payable on the first day of each month.

The company also issued some 8 million common stock purchase warrants to FGAM, including 4.8 million warrants that allow the holder to purchase shares of common stock at $0.40 per warrant share until July 19, 2025, in addition to 3.2 million warrants allowing the holder to buy a warrant share at $0.45 per warrant share until the same date, if and when Body and Mind draws on the delayed draw term loan.

The company intends to utilize the financing to fund its existing and future projects and its future growth opportunities.

"This financing allows the Company to advance growth initiatives and grow revenues through development projects, acquisitions, brand expansion, and license applications," Michael Mills, the company's CEO explained.

Mind and Body has been ramping up its operations and opportunities within the U.S. cannabis space over the past year while managing to generate $7.16 million in revenue during the third quarter. According to its latest earnings report, that represents a 580% year-over-year growth.

"Over the last several quarters, we have demonstrated significant growth in revenue, EBITDA, and our asset base – including record financial results in our most recently reported quarter - by focusing on operations and opportunities in the rapidly growing U.S. cannabis space," Mills commented.

Photo by Tim Foster on Unsplash

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