Feuerstein Kulick advises Glass House Brands Inc. on a senior secured term loan of up to US $ 100 million


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NEW YORK, December 13, 2021 / PRNewswire / – Feuerstein Kulick advises Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.AU) (NEO: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF) , one of the fastest growing vertically integrated cannabis companies in the United States, under a senior secured term loan agreement (the “Loan Agreement”) with a fund of United States-based private credit investment (the “Lender”) up to a maximum of $ 100 million (the “Loan”), with an initial drawdown of $ 50 million (the “Initial Term Loan”). The Initial Term Loan has a variable interest rate currently set at 10% per annum and may in no case exceed 12% per annum. The gross proceeds of the loan will be used to finance the progressive modernization of the Company’s approximately 5.5 million square foot growing facilities currently under renovation in Camarillo, California and for general corporate purposes.

The initial term loan will be repayable in monthly installments from December 1, 2023, to a total amount equal to 1.25% of the initial capital of the initial term loan. Two subsequent prints of $ 25 million (the “Deferred Drawing Term Loans”) will each be available at future dates provided certain terms and conditions of the loan agreement have been met and will be repayable in monthly installments from December 1, 2023, to a total amount equal to 1.25% of the initial capital of the deferred drawing term loans. The terms of the Loan Agreement include the creation and issuance of 2,000,000 new Company warrants which will be freely negotiable in Canada under the same CUSIP / ISIN as the Company’s existing stock exchange-traded warrants (NEO: GLAS.WT.U; OTCQX: GHBWF), and delivered to the lender at closing, with each warrant exercisable at a price exercise of US $ 11.50 to acquire one subordinate voting share, one restricted voting share or one limited voting share, as the case may be (NEO: GLAS.AU) until June 26, 2026, subject to acceleration or reimbursement in accordance with the terms of the warrant agency agreement governing the warrants.

Samantha gleit, Jason cohen, and Dan Rich de Feuerstein Kulick LLP acted as debt advisor to Glass House in connection with the transaction. Feuerstein Kulick LLP is a strong law firm that represents clients in all aspects of the legal cannabis space, including investors, funds, cutting edge technology and ancillary companies, brands, licensees and operators.

Media contact: [email protected]

SOURCE Feuerstein Kulick LLP

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