TORONTO, Sept. 21, 2020 /CNW/ - The Supreme Cannabis
Company, Inc. ("Supreme Cannabis" or the "Company")
(TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) announces that it has
entered into an agreement (the "Credit Facility Amendment") with
its lenders to amend the three-year term credit facility initially
announced on November 14, 2019 (the
"Credit Facility").
Under the terms of the Credit Facility Amendment, the Company
secured a deferral of its financial covenants related to fixed
charge coverage ratio and leverage by 12 months to begin in the
quarter ending March 31, 2022. New
covenants regarding minimum liquidity and EBITDA will be tested in
the interim. In addition, the Company has agreed to a 75 basis
point increase in the applicable interest rate margin on the Credit
Facility to reflect current industry dynamics.
The requirement for a minimum restricted cash balance has been
removed and that balance has been used to repay a portion of the
term loan outstanding. With the Credit Facility Amendment, the
Credit Facility remains with a three-year term and has an amended
term loan of $57.2 million and a
revolving credit facility limit of $7.0
million.
"This amended facility is in line with our ongoing focus on
right-sizing the business to align with our current strategy, and
also proactively provides us improved runway to execute on our plan
of being a profitable premium Cannabis CPG company," said
Beena Goldenberg, President and CEO
of Supreme Cannabis. "It also demonstrates that our lenders
continue to have confidence in the Supreme Cannabis business
case."
The disclosure in this news release relating to the Credit
Facility and the Credit Facility Agreement is qualified in its
entirety by the full text of such documents, copies of which are or
will be filed on www.sedar.com.
About Supreme Cannabis.
The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF)
(FRA: 53S1), is a global diversified portfolio of distinct cannabis
companies, products and brands. Since 2014, the Company has emerged
as one of the world's most premium producers of recreational,
wholesale and medical cannabis products.
Supreme Cannabis' portfolio of brands caters to diverse consumer
and patient experiences, with brands and products that address
recreational, wellness, medical and new consumer preferences. The
Company's recreational brand portfolio includes, 7ACRES, Blissco,
7ACRES Craft Collective, Sugarleaf and Hiway. Supreme Cannabis
addresses national and international medical cannabis opportunities
through its premium Truverra brand.
Supreme Cannabis' brands are backed by a focused suite of
world-class operating assets that serve key functions in the value
chain, including, scaled cultivation, value-add processing,
automated packaging and product testing and R&D. Follow the
Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.
Forward-Looking Information.
Certain statements made in this press release may constitute
"forward-looking information", "future oriented financial
information" or "financial outlooks" (collectively,
"forward-looking information") within the meaning of applicable
securities laws. Forward-looking information may relate to
anticipated events or results including, but not limited
to: the Company's ongoing focus on right-sizing the business
and plan of being a profitable premium Cannabis CPG company; and
other statements that are not historical facts. Particularly,
information regarding our expectations of future results, targets,
performance achievements, prospects or opportunities is
forward-looking information. Often, but not always, forward-looking
statements can be identified by the use of forward-looking
terminology such as "may", "will", "expect", "believe", "estimate",
"plan", "could", "should", "would", "outlook", "forecast",
"anticipate", "foresee", "continue" or the negative of these terms
or variations of them or similar terminology. Forward-looking
information is current as of the date it is made and is based on
reasonable estimates and assumptions made by us at the relevant
time in light of our experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that we believe are appropriate and
reasonable in the circumstances. To the extent any forward-looking
information in this press release constitutes "future oriented
financial information" or "financial outlooks", within the meaning
of applicable securities laws, the purpose of such information
being provided is to demonstrate the potential of the Company and
readers are cautioned that this information may not be appropriate
for any other purpose. However, we do not undertake to update any
such forward-looking information whether as a result of new
information, future events or otherwise, except as required under
applicable securities laws in Canada. There can be no assurance that such
estimates and assumptions will prove to be correct.
Many factors could cause our actual results, level of activity,
performance or achievements or future events or developments to
differ materially from those expressed or implied by the
forward-looking information as discussed in the "Risk Factors"
section of the Company's Annual Information Form dated September 17, 2019 ("AIF"). A copy of the AIF and
the Company's other publicly filed documents can be accessed under
the Company's profile on the System for Electronic Document
Analysis and Retrieval ("SEDAR") at www.sedar.com. The Company
cautions that the list of risk factors and uncertainties described
in the AIF is not exhaustive and other factors could also adversely
affect its results. Readers are urged to consider the risks,
uncertainties and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information.
We simply grow better.
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SOURCE The Supreme Cannabis Company, Inc.