Decibel Cannabis Secures New Debt To Repay Convertible Debentures

Decibel Cannabis (TSXV: DB) is increasing its outstanding debt with a lender so as to be able to repay outstanding convertible debt. The additional funds come from connectFirst Credit Union, whom the currently last year entered into a credit facility with.

The amended credit facility will see the company receive a total of $54 million in debt capital, consisting of $40.5 million in term debt, a $6.0 million receivables facility, as well as accordion debt of $7.5 million. The arrangement will see the firm add $12 million in funding to the currently outstanding term loan, which the company expects will allow for the repayment of outstanding convertible debentures.

The firms convertible debentures currently having $12.0 million in principal outstanding. They come due on May 10, 2022.

The new debt taken on by the company consists of a 5-year term, with the interest rate sitting at 4.75% for the term loan, while the receivables facility, also referred to as “authorized overdraft,” bears interest at prime + 1.00%, and the accordion facility sees interest accrue at prime + 2.00%.

Decibel Cannabis last traded at $0.15 on the TSX Venture.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Jay Lutz

As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.

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