Body And Mind Extends Debt Financing

Body and Mind Inc. BMMJ BAMM provided an update on the extension and amendments to its loan agreement entered into between the company, DEP Nevada, Inc., a wholly owned subsidiary of the company, the guarantors as set forth in the loan agreement, FG Agency Lending LLC and Bomind Holdings LLC, dated July 19, 2021, as amended on November 30, 2021.

The company has entered into a second amendment to the loan agreement to extend the maturity date by one year to July 19, 2026. Additionally, amendment no. 2 to loan agreement allows the outside date for the company to draw on the delayed draw term loan of $4.44 million to be extended from June 1, 2022 to March 31, 2023, whereby $4 million in funds will be advanced to the company. The ability of the company to draw on the delayed draw term loan is subject to compliance with certain provisions in loan agreement including provision of a satisfactory budget approved at the sole discretion of the lender.

The amendment no. 2 to loan agreement increases the interest rate on the advanced funds from 13% to 15% per annum, which additional 2% interest may be paid in kind, with the interest being payable on the first day of each month. Amendment No. 2 to loan agreement provides for an exit fee equal to 1.5% of the principal balance, which is due and payable upon any payment, in part or in full, of the initial term loan and the delayed draw term loan.

As partial consideration for amendment no. 2 to loan agreement, the company has issued 1 million common stock purchase warrants to the lender. Each warrant entitles the holder to acquire shares of common stock at an exercise price of $0.16 per warrant share until June 14, 2027.

Amendment no. 2 to loan agreement contains additional features and requirements and the material terms will be described in a current report on form 8-K to be filed by the company on or about June 17, 2022.

"The extension of our current loan facility aligns with our development program and provides flexibility around future opportunities," stated Michael Mills, CEO of body and mind. "As we continue with our expansion plans, this opportunity to amend the loan facility provides the company with optionality to pursue opportunities."

Photo by Giorgio Trovato on Unsplash

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