TORONTO, April 29, 2022 (GLOBE NEWSWIRE) — Entourage Health Corp. (formerly WeedMD Inc.) (TSX-V:ENTG) (OTCQX: ETRGF) (ESF: 4WE) (“Surroundings“or the”Company”), a Canadian producer and distributor of award-winning cannabis products and brands, is pleased to announce that it has amended and expanded its existing credit facility (the “Credit facility”) with a subsidiary of the LiUNA Pension Fund of Central and Eastern Canada (“FPL”), adding an additional funding availability of $15 million. The credit facility will be used by Entourage for general working capital purposes as the company continues to execute a balanced approach to achieve sustainable profitable growth by the end of 2022.
“Entourage is proud of its long-standing reputation for producing premium cannabis products for the Canadian medical and retail markets. Most recently, we announced positive operating results reflecting the business transformation initiatives undertaken over the past year to reduce costs, increase quality points and expand our market share,” said George. Scorsis, CEO and Executive Chairman. “Moving forward, we are committed to executing our strategic growth plans to achieve our revenue targets and solidify our positioning in the industry as one of the top 10 producers. We appreciate the trust and support demonstrated by our trusted partner and strategic investor LiUNA Pension Fund with this additional funding that does not dilute our shareholding and supports our future growth. We will maintain our disciplined approach to achieve sustainable business growth by the end of 2022.”
Credit Facility Terms
The credit facility continues to bear interest at 15.25% with the option, at the Company’s discretion, to capitalize interest in lieu of cash interest payments and is scheduled to mature in August 2022. loan is secured by the assets of the Company and its subsidiaries, including the Company’s production facilities, and contains the usual financial and other covenants, as well as the conditions precedent typical for a transaction of this nature. LPF’s security under the Credit Facility is second only to the Company’s primary creditor.
In addition to the new financing provided under the credit facility, the Company and LPF have agreed to defer certain of the Company’s financial commitments to May 31, 2022.
A copy of the Credit Facility Amendment will be available under the Company’s profile on SEDAR at www.sedar.com.
Transaction with a related party
LPF is an insider of the Company since it holds more than 10% of the common shares of the Company. Consequently, the modification of the credit agreement represents a “related party transaction” within the meaning of the multilateral instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101”). The Company is relying on the exemption from minority shareholder approval requirements under NI 61-101 as the credit facility qualifies as a non-capital loan as described in Section 5.7( f) of NI 61-101, and obtained by the Company on reasonable terms. which are no less advantageous to the Company than if the credit facility had been obtained from an arm’s length party. Funds borrowed under the Credit Facility are not convertible or repayable by the issuance of shares or voting securities of the Company. The material change report will not be filed more than 21 days before the Amended Credit Agreement is entered into due to the timing of the announcement and the closing thereof occurring in less than 21 days.
Visit the new Entourage Health website here. To access our corporate video, visit us here and to access our latest investor presentation and corporate presentation here.
About Entourage Health Corp.
Entourage Health Corp. is the publicly traded parent company of Entourage Brands Corp. (formerly WeedMD RX Inc.) and CannTx Life Sciences Inc., licensees producing and distributing cannabis products for the medical and adult markets. The Company owns and operates a state-of-the-art hybrid greenhouse and processing facility located on 158 acres in Strathroy, Ontario; a 26,000 square foot fully licensed processing facility in Aylmer, Ontario specializing in cannabis extraction; and a center of excellence in micropropagation, tissue culture and genetics in Guelph, Ontario. With its medical-centric brand Starseed Medicinal, Entourage has expanded its multi-channel distribution strategy. Starseed’s industry-first exclusive partnership with LiUNA, Canada’s largest construction union, as well as employers and labor groups complements Entourage’s direct sales to medical patients. Entourage’s portfolio of elite adult-use products includes Color Cannabis, Saturday Cannabis and Royal City Cannabis Co. – sold through eight provincial distribution agencies. The Company also maintains strategic relationships in the seniors market and supply agreements with Shoppers Drug Mart. It is the exclusive Canadian producer and marketer of the award-winning American wellness brand Mary’s Medicinals sold in the medical and adult channels. As part of a collaboration with subsidiary of The Boston Beer Company, Entourage is also the exclusive distributor of cannabis-infused beverages in Canada, slated to launch in 2022.
For more information, please visit us at www.entouragehealthcorp.com
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For more information, please contact:
For investor inquiries:
Valter Pinto or Scott Eckstein
KCSA Strategic Communications
For media inquiries:
Marianella de la Barrera
SVP, Communications and Corporate Affairs
Forward-looking information This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, which is based on Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and beliefs regarding future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”. “, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variants thereof, or statements that certain events or conditions “could”, “would” or “will” occur, or through strategy discussions.
The forward-looking information contained in this press release is based on expectations, estimates, projections, assumptions and views of future events that management believes are reasonable under the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information necessarily involves known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources and/or inability to access sufficient capital on favorable terms; the cannabis industry in Canada in general; Entourage’s ability to implement its business strategies; the COVID-19 pandemic; competition; bad harvests; and other risks.
Any forward-looking information speaks only as of the date on which it is made and, except as required by law, Entourage undertakes no obligation to update or revise any forward-looking information, whether as a result new information, future events or the like. New factors appear from time to time and it is not possible for Entourage to predict all of these factors. When reviewing such forward-looking information, readers should keep in mind the risk factors and other cautionary statements contained in Entourage’s disclosure documents filed with applicable Canadian securities regulators on SEDAR at ‘address www.sedar.com. The risk and other factors set forth in the disclosure statements could cause actual events or results to differ materially from those described in the forward-looking information.
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