Vext Science, Inc. (“Vext” or the “Company”) (CSE: VEXT) (OTCQX: VEXTF) a cannabinoid brand leader based in Arizona, leveraging its core expertise in extraction, manufacturing, cultivation and marketing to build a profitable multi-state footprint, today announced that it has entered into an agreement with a California-based lender for a $22.2 million credit facility (the “Credit Facility”), which will be used to refinance current secured debt, and working capital for potential acquisitions, capital expenditures and general and administrative expenses.
Eric Offenberger, CEO of Vext stated, “This credit facility both lowers Vext’s cost of capital, and gives us additional flexibility as we continue to execute our growth plans in Arizona and Ohio. The next 12 months are expected to be a period of growth for Vext. With a solid balance sheet, ongoing free cash flow, and access to relatively low cost, non-dilutive capital, we are in a position of strength to continue generating growth and profitability for shareholders.”Terms of Credit Facility
The Credit Facility is comprised of two term loans. The first, is a $17.185 million 20-year first lien secured term loan, bearing interest of WSJ Prime + 2.75%, with a floor price of 6.25%. The second, is a $5 million five-year second lien secured term loan, bearing interest at WSJ Prime + 2.75%, with a floor price of 6.25%.
Canaccord Genuity acted as a financial adviser to Vext in connection with the Credit Facility.
