Body And Mind Extends Debt Financing

body and mind inc. BMMJ BAM provided an update on the extension and modifications of its loan agreement concluded between the company, DEP Nevada, Inc., a wholly owned subsidiary of the companythe guarantors as defined in the loan agreement, FG Agency Lending LLC and Bomind Holdings LLCdated July 19, 2021, as amended November 30, 2021.

The company entered into a second amendment to the loan agreement for extend the due date by one year to July 19, 2026. Moreover, amendment n. 2 to the loan agreement allows the company to draw on the delay draw $4.44 million term loan extended from June 1, 2022 to March 31, 2023, under which $4 million in funds will be advanced to the company. The Company’s ability to draw on the Deferred Drawn Term Loan is subject to compliance with certain terms of the Loan Agreement, including the provision of a satisfactory budget approved at the Lender’s sole discretion.

Amendment no. 2 to the loan contract increase the interest rate on funds advanced by 13% at 15% per year, which additional 2% interest may be paid in kind, the interest being payable on the first day of each month. Amendment No. 2 to the loan agreement provides for an exit fee equal to 1.5% of the principal balance, which is due and payable upon any repayment, partial or total, of the original term loan and the loan deferred draw term.

In partial consideration of amendment no. 2 to the loan agreement, the company issued 1 million common stock purchase warrants to the lender. Each warrant entitles its holder to acquire common shares at an exercise price of $0.16 per warrant share until June 14, 2027.

Amendment no. 2 to the Loan Agreement contains additional features and requirements and the material terms will be described in a current report on Form 8-K to be filed by the Company on or about June 17, 2022.

“The extension of our current lending facility aligns with our development program and provides flexibility for future opportunities,” said Michael Mills, CEO of body and mind. “As we continue with our expansion plans, this opportunity to modify the loan facility provides the company with the ability to pursue opportunities.”

Photo by Giorgio Trovato on Unsplash

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