Auxly Cannabis Group has closed on two transactions intended to reduce the Canadian operator’s debt and strengthen its financial position.
The transactions, originally announced June 19, extend its credit facility with the Bank of Montreal and settle all debts owed to Imperial Brands, according to a Tuesday news release.
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With the transactions completed, Toronto-headquartered Auxly has:
Eliminated about $21 million in debt. Reduced debt-service obligations by about $700,000 per year. Provided a new $10 million revolving facility for financial flexibility to support growth. Removed the “going concern” uncertainty disclosed in the company’s financial statements in March as well as in 2022.
The moves leave Imperial Brands with a 19.9% stake in Auxly.
The British tobacco giant first invested in the
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