Emerald Health Therapeutics' Pure Sunfarms (“PSF”) joint venture has finalized the expansion of its credit facility with its existing lender to $59 million, including accordion provisions of $22.5 million. The expanded credit facility (the “Credit Facility”) consists of a $7.5 million revolving operating loan (the “Revolver”) and a $10 million term loan (the “New Term Loan”), in addition to its existing $19 million term loan (the “Existing Term Loan”). "The New Term Loan is specifically designated for the 1.1 million square foot Delta 2 greenhouse while the Existing Term Loan is specifically designated for the 1.1 million square foot Delta 3 greenhouse facility," the team with the company explains.
"The $7.5 million Revolver and the $10 million New Term Loan include an accordion provision that allows Pure Sunfarms to request additional lender commitments of up to an additional $7.5 million and $15 million, respectively, subject to an additional lender entering the syndicate on or before May 30, 2020. Each of the components of the Credit Facility, including the Existing Term Loan, mature on February 7, 2022."
As part of this transaction, Village Farms International, Inc. has completed an additional investment in PSF of $8 million, which reduces Emerald’s equity position in Pure Sunfarms by 1.3% to 41.3%. Emerald continues to hold three of six seats on Pure Sunfarms’ Board of Directors.
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