Cansortium Inc. Completes New Senior Secured Credit Agreement Ahead of Planned Business Combination Closing with RIV Capital
Cansortium has secured a new senior secured credit agreement worth up to $96.5 million with Chicago Atlantic, featuring a 12% cash interest rate and 1% PIK interest, maturing November 26, 2028. The agreement refinances the existing $71 million loan and provides access to two additional credit lines: $10 million for real estate acquisitions and $15 million for potential Buffalo facility acquisition. The deal includes a single financial covenant requiring minimum unrestricted cash of $4.5 million quarterly. The company expects to close its business combination with RIV Capital in early December 2024, having obtained all necessary regulatory approvals.
Cansortium ha ottenuto un nuovo accordo di credito garantito senior del valore di fino a $96,5 milioni con Chicago Atlantic, con un tasso d'interesse in contanti del 12% e un interesse PIK dell'1%, con scadenza il 26 novembre 2028. L'accordo rifinanzia il prestito esistente di $71 milioni e offre accesso a due linee di credito aggiuntive: $10 milioni per acquisizioni immobiliari e $15 milioni per una potenziale acquisizione di un impianto a Buffalo. L'accordo include un'unica clausola finanziaria che richiede un minimo di liquidità non vincolata di $4,5 milioni su base trimestrale. L'azienda prevede di completare la sua combinazione aziendale con RIV Capital all'inizio di dicembre 2024, dopo aver ottenuto tutte le approvazioni regolamentari necessarie.
Cansortium ha asegurado un nuevo acuerdo de crédito senior garantizado por un valor de hasta $96.5 millones con Chicago Atlantic, que presenta una tasa de interés en efectivo del 12% y un interés PIK del 1%, con vencimiento el 26 de noviembre de 2028. El acuerdo refinancia el préstamo existente de $71 millones y proporciona acceso a dos líneas de crédito adicionales: $10 millones para adquisiciones inmobiliarias y $15 millones para una posible adquisición de instalaciones en Buffalo. El acuerdo incluye un único convenio financiero que requiere un mínimo de efectivo disponible sin restricciones de $4.5 millones trimestralmente. La compañía espera cerrar su combinación de negocios con RIV Capital a principios de diciembre de 2024, habiendo obtenido todas las aprobaciones regulatorias necesarias.
Cansortium는 시카고 아틀랜틱과 함께 최대 $96.5백만 달러 규모의 새로운 고급 담보 신용 계약을 체결하였으며, 여기에는 12%의 현금 이자율과 1%의 PIK 이자가 포함되어 있으며, 만기는 2028년 11월 26일입니다. 이 계약은 기존 7100만 달러 대출을 재융자하고, 부동산 인수를 위한 1000만 달러와 버팔로 시설 인수를 위한 1500만 달러라는 두 개의 추가 신용 라인에 대한 접근을 제공합니다. 이 거래에는 분기별로 최소 제한 없는 현금 450만 달러를 요구하는 단일 재무 약정이 포함되어 있습니다. 회사는 모든 필요한 규제 승인을 받은 후 RIV Capital와의 비즈니스 조합을 2024년 12월 초에 마무리할 것으로 예상하고 있습니다.
Cansortium a sécurisé un nouvel accord de crédit senior garanti d'une valeur allant jusqu'à $96,5 millions avec Chicago Atlantic, présentant un taux d'intérêt en espèces de 12 % et un intérêt PIK de 1 %, avec échéance le 26 novembre 2028. L'accord refinance le prêt existant de 71 millions de dollars et offre accès à deux lignes de crédit supplémentaires : 10 millions de dollars pour des acquisitions immobilières et 15 millions de dollars pour une acquisition potentielle d'une installation à Buffalo. L'accord comprend un unique engagement financier exigeant un minimum de liquidités non restreintes de 4,5 millions de dollars par trimestre. L'entreprise prévoit de finaliser sa combinaison d'affaires avec RIV Capital début décembre 2024, après avoir obtenu toutes les approbations réglementaires nécessaires.
Cansortium hat eine neue gesicherte Kreditvereinbarung in Höhe von bis zu 96,5 Millionen US-Dollar mit Chicago Atlantic gesichert, die einen Zinssatz von 12% in bar und 1% PIK-Zinsen aufweist und am 26. November 2028 fällig wird. Die Vereinbarung refinanziert das bestehende Darlehen in Höhe von 71 Millionen US-Dollar und bietet Zugang zu zwei zusätzlichen Kreditlinien: 10 Millionen US-Dollar für Immobilienerwerb und 15 Millionen US-Dollar für den möglichen Erwerb einer Einrichtung in Buffalo. Der Deal umfasst eine einzige finanzielle Klausel, die einen Mindestbestand an ungebundenem Bargeld von 4,5 Millionen US-Dollar pro Quartal erfordert. Das Unternehmen erwartet, die Geschäftsverbindung mit RIV Capital Anfang Dezember 2024 abzuschließen, nachdem alle erforderlichen behördlichen Genehmigungen eingeholt wurden.
- Secured new $96.5M credit agreement with favorable terms
- Extended debt maturity from 2025 to 2028
- Eliminated $10M prepayment requirement for RIV Capital merger
- Access to additional $25M in credit lines for growth initiatives
- Single financial covenant structure provides operational flexibility
- 13% total interest rate (12% cash + 1% PIK) on credit agreement
- Minimum cash balance requirement of $4.5M quarterly
- Issued convertible note worth $6.5M in Smith Transaction
TAMPA, Fla., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) (“Cansortium” or the “Company”), a vertically integrated, multi-state cannabis company operating under the FLUENT™ brand, announced today that it has closed on a new senior secured credit agreement (the “Credit Agreement”) of up to
The Credit Agreement refinances the existing
“We are excited to announce the successful completion of our senior secured refinancing. The loan’s favorable interest rate and single financial covenant underscore our strong financial standing, while its non-dilutive structure - free of equity or warrants – preserves shareholder value. As a result of this transaction, we have no material debt maturities until late 2028,” said Robert Beasley, CEO of Cansortium. “The refinancing includes access to two additional credit lines totaling
The Credit Agreement provides for an initial loan of
“Cansortium has executed with prudence and foresight in its core states of Florida, Pennsylvania and Texas, and we have every confidence in their strategic approach to meet demands in additional markets,” said Peter Sack, Managing Parter of Chicago Atlantic. “They are innately focused on customer experience, fiscal responsibility, and operational excellence, and Chicago Atlantic is thrilled to support their next phase of growth.”
The Credit Agreement includes a single financial covenant requiring Cansortium to maintain a minimum unrestricted cash balance of
The foregoing description of the Credit Agreement is not complete and is qualified in its entirety by reference to the full text of the Credit Agreement, a copy of which will be filed on the Company’s profile on SEDAR+ at www.sedarplus.ca.
Chicago Atlantic Credit Advisers, LLC served as lead arranger for the Credit Agreement and Chicago Atlantic Admin, LLC serves as Administrative Agent for the Credit Agreement.
Smith Transaction
Cansortium and certain of its affiliates and William Smith, a director and the Executive Chair of Cansortium, and certain companies controlled by Mr. Smith (together with Mr. Smith, collectively, the “Smith Group”), have entered into an amended and restated termination agreement (the “Amended Smith Transaction Termination Agreement”) to replace in its entirety the existing termination agreement dated May 30, 2024 (the “Smith Transaction Termination Agreement”), which provided for, among other things, the termination of that certain agreement among Cansortium, certain of its affiliates and the Smith Group (the “Initial Smith Transaction Agreement”). Pursuant to the terms of the Amended Smith Transaction Termination Agreement, Cansortium paid to the Smith Group a
The transactions contemplated by the Amended Smith Transaction Termination Agreement (the “Smith Transaction”) constitutes a “related party transaction” as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions (“MI 61-101”). Cansortium has relied on the exemptions from obtaining a formal valuation and minority shareholder approval of the Cansortium Shareholders with respect to the Smith Transaction in accordance with sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the aggregate fair market value of the cash consideration and the Smith Convertible Note issuable in connection with the Smith Transaction does not exceed
The foregoing description of the Amended Smith Transaction Termination Agreement is not complete and is qualified in its entirety by reference to the full text of the Amended Smith Transaction Termination Agreement, a copy of which will be filed on the Company’s profile on SEDAR+ at www.sedarplus.ca.
For more information, please visit: investors.getfluent.com
About Cansortium Inc.
Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas. The Company operates under the Fluent™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium’s unrelenting commitment to operational excellence in cultivation, production, distribution, and retail. The Company is headquartered in Tampa, Florida.
Cansortium Inc.’s Common Shares trade on the CSE under the symbol “TIUM.U” and on the OTCQB Venture Market under the symbol “CNTMF”. For more information about the Company, please visit www.getFLUENT.com.
About Chicago Atlantic
Chicago Atlantic is a private markets alternative investment manager focused on industries and companies where demand for capital exceeds traditional supply. The firm’s investment strategies include opportunistic private credit and equity with focuses on loans to esoteric industries, specialty asset-based loans, liquidity solutions and growth and technology finance. Chicago Atlantic has closed over
Forward-Looking Information
Certain information in this news release may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates, and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available on the Company’s profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Company Contact
Robert Beasley, CEO
investors.getfluent.com
Media Contact:
Trailblaze
FLUENT@Trailblaze.co
FAQ
What is the value and interest rate of Cansortium's (CNTMF) new credit agreement?
When will Cansortium (CNTMF) complete its business combination with RIV Capital?
What additional credit lines are available under Cansortium's (CNTMF) new agreement?
What is the maturity date of Cansortium's (CNTMF) new credit agreement?
