On October 25, 2024, Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ), a multi-state operations-focused cannabis company, announced that it has entered into a credit facility agreement (the “Credit Facility”) with Bengal Catalyst Fund, LP (“Bengal” or “Lender”) for up to US$2.3 million. The funds from this Credit Facility are intended to be fully drawn down to support the company’s objectives, including the development of its in-process dispensary projects in Illinois and New Jersey.
According to Michael Mills, CEO of Body and Mind, “The credit facility agreement provides the company with the flexibility to achieve its near-term goals, such as rationalizing its asset base and protecting shareholder value. Additionally, the company stands to receive a US$2.5 million contingent payment from the sale of its Ohio dispensary if a second retail license is awarded and opened.”
Under the terms of the Credit Facility, funds drawn will accrue interest at 18% per annum, with monthly payments. The maturity date is set at 2 years from the first borrowing, and funds can be borrowed up to 1 year from signing the agreement. The Company is only required to make monthly interest payments until the maturity date, with the option to prepay any amount early. The company is obligated to make loan repayments from any key asset sale.
In conjunction with the Credit Facility, the company has made amendments to the Convertible Debentures previously issued to the Lenders. The agreement includes additional customary lending terms, with priority payment given to the Credit Facility.
To ensure transparency, the company disclosed that Bengal and its related entities are considered “related parties” of the Company, and as such, their participation in these agreements constitutes a “related party transaction” under applicable laws. The company has taken the necessary steps to comply with these regulations.
Body and Mind Inc. is an operations-focused cannabis company with retail dispensaries in various states. Bengal Impact Partners, LLC is an alternative asset manager specializing in the cannabis industry. For more information, visit their website.
Please note that forward-looking statements have been made in this news release. It is important to consider the risks and uncertainties associated with these statements when making investment decisions.
