Entourage Health Announces $8.9 Million Upsize to Credit Facility and Implementation of Proposed Amendments to 8.5% Unsecured Convertible Debentures — Entourage Health Corp.
Summary
Toronto, Canada, June 27, 2022 Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) (Entourage or the Company), a Canadian producer and distributor of award-winning cannabis products, announced today it has amended and upsized its existing credit facility (the Credit Facility) with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF), adding an additional $8.9 million in non-dilutive funding availability (the Credit Facility Amendments). Net proceeds from the Credit Facility will be used by Entourage to repay the Debentures (as defined herein) and for general working capital purposes as the Company continues to execute a balanced approach to achieving sustainable profitable growth.Entourage is also pleased to announce it has implemented the previously announced amendments (the Debenture Amendments, and, together with the Credit Facility Amendments, the Amendments) to the trust indenture dated as of September 25, 2019 between TSX Trust Company and the Company governing the Companys 8.5% unsecured convertible debentures (the Debentures). As a result of the Debenture Amendments, the maturity date for the Debentures has been amended to June 30, 2022 (the New Maturity Date) and, on the New Maturity Date, the Debentures will be repaid, in cash, in an amount equal to 60% of the principal amount of Debentures then outstanding, together with any accrued and unpaid interest earned on 100% of the principal amount of the Debentures from the last Interest Payment Date (as defined in the Indenture), less any tax required by law to be deducted.Entourage has received consent for each of the Amendments from its senior lender under the Companys senior secured credit facility entered into on March 29, 2019.The Credit Facility continues to bear an interest rate of 15.25% with the option, at the Companys discretion, to capitalize interest in lieu of cash payments of interest and is set to mature in August, 2022. The Company is relying on the exemption from minority shareholder approval requirements under MI 61-101 as the Credit Facility is considered a non-equity loan as described under Section 5.7(f) of MI 61-101, and obtained by the Company on reasonable terms that are no less advantageous to the Company than if the Credit Facility was obtained from an arms length party. The funds borrowed under the Credit Facility are not convertible into or repayable by the issuance of equity or voting securities of the Company.