Aleafia Health Closes New $19M Credit Facility, Improves Financial Flexibility

Aleafia Health Inc. AH ALEAF announced Wednesday that it is closing its credit facility of up to $19 million.

The financing provides the Toronto-based company with liquidity to fund operations and organic growth initiatives.

"This financing improves our liquidity and capital structure as the company's senior secured debt obligations will now mature in December 2023 rather than in August 2022," Geoffrey Benic, the company's CEO said. "The transaction allows us to continue the growth of our core adult-use and medical cannabis sales channels, as we again expect to realize sequential growth in both channels over the previous quarter."

The credit facility consists of a revolving receivables facility of up to $7 million and a term loan of $12 million. The maturity date is December 2023.

In addition, the term loan was fully drawn by the company upon closing, while the revolving receivables facility is expected to be drawn in January 2022.

Aleafia said net proceeds from the credit facility - financed by the Garrington Group of Companies - will be used to fund working capital, repay $5 million in principal on the existing senior secured credit facility that was announced on August 23, 2021, along with accrued interest and fees, and for general corporate purposes.

More recent news from Aleafia:

• Aleafia Health's Q3 Cannabis Revenue Grows 123% YoY, Reports Higher Net Loss, Negative Adjusted EBITDA
• Aleafia Health Closes $10M Credit Facility, Improves Financial Flexibility To Continue Sales Growth
• Cantor: 'Aleafia Continues To Post Solid Momentum,' Firm Bullish But Lowers Price Target Due To Cannabis Sector Derating
• Aleafia Health Reveals 53% QoQ Spike In Q2 2021 Cannabis Net Revenue

ALEAF Price Action

Aleafia's shares traded 1.55% lower at $0.1083 per share after the market close on Tuesday.

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