Goodness Growth Holdings, Inc. Amends Credit Facility
April 31, 2023 at 07:18 pm
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Goodness Growth Holdings, Inc. announced that it has executed a fifth amendment to its credit facility with its senior secured lender, Green Ivy, an affiliate of Chicago Atlantic. The fifth amendment to the Company's Green Ivy credit facility reduces cash outlays through the removal of a required amortization schedule and extends the maturity date on the credit facility loans to April 30, 2024 with opportunities for performance-based extensions. The Company will issue up to 15,000,000 Subordinate Voting Shares to the lenders in consideration for the credit facility amendment.
In addition, the Company is in advanced discussions with a separate affiliate of Chicago Atlantic to finalize a U.S. $10.0 million secured convertible loan financing. Preliminary terms for this convertible note offering include a three-year term and an interest rate of 12.0%, including 6.0% paid-in-kind and warrants to purchase 6,250,000 Subordinate Voting Shares of the Company.
Goodness Growth Holdings, Inc. is a multi-state cannabis company. The Company has operations in four markets in Maryland, Minnesota, New Mexico, and New York. The Company is science-focused and provides patients and adult-use customers with cannabis-based products. It cultivates and manufactures pharmaceutical-grade cannabis extracts and sells its products at both Company-owned and third-party dispensaries to qualifying patients and adult-use customers. It has developed proprietary cannabis strains, cultivation methods, carbon dioxide extraction, ethanol extraction, and other processes related to the production, refinement, and packaging of cannabis products. The Company manufactures, assembles, and packages cannabis finished goods across a range of product segments, including Inhalable, Ingestible, and Topicals. Its brands include Vireo Spectrum, Vireo Selects, 1937, LiteBud, Boundary Waters, Hi-Color, Kings and Queens, and various other flower and trim brands.