Entourage Health Increases Senior Secured Credit Facility
October 24 2024 - 5:30PM
Entourage Health Corp. (
TSX-V:
ENTG) (
OTCQX: ETRGF) (
FSE:
4WE) ("
Entourage" or the
"
Company"), a Canadian producer and distributor of
award-winning cannabis products, confirmed today it has signed an
amendment (the "
Amendment") to its senior secured
amended and restated credit facility entered into on January 31,
2023 (the "
Credit Facility") with an affiliate of
the LiUNA Pension Fund of Central and Eastern Canada
("
LPF").
The Amendment provides an increase to the Credit
Facility by an addition of approximately $2,500,000 (which funds
have been advanced to the Company in a single draw). No further
changes were made in respect of the Credit Facility.
As previously announced, the Company has
received a forbearance letter from LPF waiving the Company’s
breaches under the Credit Facility until October 31, 2024, subject
to the satisfaction or waiver of certain conditions. The Company is
continuing to work collaboratively with LPF to agree on further
amendments to the Credit Facility.
Related Party Transaction
LPF is an insider of the Company as it owns
greater than 10% of the common shares of the Company. Accordingly,
the Amendment represents a "related party transaction" under
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). 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 arm's 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. The
material change report will not be filed more than 21 days prior to
the entering into of the Amendment due to the timing of the
announcement and closing thereof occurring in less than 21
days.
A copy of the Amendment will be made available
under the Company's profile on SEDAR+ at www.sedarplus.ca.
About Entourage Health
Corp.
Entourage Health Corp. is the publicly traded
parent Company of Entourage Brands Corp., a licence holder
producing and distributing cannabis products for the medical and
adult-use markets. The Company owns and operates a fully licensed
26,000 sq. ft. Aylmer, ON processing facility. With its Starseed
Medicinal medical-centric brand, Entourage has expanded its
multi-channelled distribution strategy. Starseed's industry-first,
exclusive partnership with LiUNA, the largest construction union in
Canada, along with employers and union groups, complements
Entourage's direct sales to medical patients. Entourage's elite
adult-use product portfolio includes Color Cannabis, Saturday
Cannabis – and now Dime Bag and Syndicate – sold across eight
provincial distribution agencies. Exclusive Canadian producer and
distributor of award-winning U.S.-based wellness brand Mary's
Medicinals, sold in both medical and adult-use channels. In
addition, Entourage also entered into an exclusive agreement with
Irwin Naturals, a renowned nutraceutical and herbal supplement
formulator of branded wellness products sold across North
America.
Follow Entourage and its brands
on LinkedIn Instagram: Color
Cannabis, Saturday Cannabis, Starseed, Syndicate,
Dime Bag
For additional information or investor or media
inquiries:Catherine FlamanSenior Director, Communications
& Corporate
Affairs416-910-0279catherine.flaman@entouragecorp.com
Forward Looking Information
This press release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation which are based upon Entourage's current internal
expectations, estimates, projections, assumptions and beliefs and
views of future events. Forward-looking information can be
identified using forward-looking terminology such as "expect,"
"likely," "may," "will," "should," "intend," "anticipate,"
"potential," "proposed," "estimate" and other similar words,
including negative and grammatical variations thereof, or
statements that certain events or conditions "may," "would" or
"will" happen, or by discussions of strategy.
The forward-looking information in this news
release is based upon the expectations, estimates, projections,
assumptions, and views of future events which management believes
to be reasonable in the circumstances. Forward-looking information
includes estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance, or other statements that are not
statements of fact. Forward-looking information necessarily involve
known and unknown risks, including, without limitation, risks
associated with the Company’s ability to pay amounts owing under
the Credit Facility and its other debt agreements; the Company
being unable to satisfy the conditions in the forbearance letter;
the future actions and co-operation of the Company’s lenders;
general economic conditions; adverse industry events; loss of
markets; future legislative and regulatory developments; inability
to access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the cannabis industry in Canada generally; the ability of Entourage
to implement its business strategies; the COVID-19 pandemic;
competition; crop failure; and other risks.
Any forward-looking information speaks only as
of the date on which it is made, and, except as required by law,
Entourage does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for Entourage to predict all
such factors. When considering this forward-looking information,
readers should keep in mind the risk factors and other cautionary
statements in Entourage's disclosure documents filed with the
applicable Canadian securities' regulatory authorities on SEDAR+ at
www.sedarplus.ca. The risk factors and other factors noted in the
disclosure documents could cause actual events or results to differ
materially from those described in any forward-looking
information.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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