DionyMed Brands Provides Financing Update, Announces Reorganization and Resumption of Trading
TORONTO, September 19, 2019–(BUSINESS WIRE)–DionyMed Brands Inc. (“DionyMed” or the “Company”) (CSE:DYME; OTCQB:DYMEF), a multi-state cannabis brands, Direct-to-Consumer and distribution platform, today announced additional investment from its senior secured investor of US$3.2MM and a reorganization of the business to right size the Company. This increases the credit facility with the senior lender to US$19.2 MM. The credit facility bears interest at LIBOR (at a floor of 2.5%) plus 12% plus an anniversary fee of 2.5%, maturing February 6, 2021. While the credit facility is currently in default, the senior lender has agreed to make additional advances to the Company.
In addition, the Company announces a reduction in operating expenses through a targeted reduction of headcount from 299 to 199 allowing the Company to amplify its focus on growing its Direct-to-Consumer cannabis delivery service Chill. These improvements, in conjunction with a revamped marketing strategy and focus on higher-margin products, began in Q3 and will continue through 2019.
The Company is also pleased to announce that its shares have resumed trading on the CSE under the symbol “DYME”, and on the OTCQB under the symbol “DYMEF”. The Company requested a halt in trading when there was a strong possibility it would announce a transaction in the ensuing days; however, multiple other potential transactions of various types have surfaced, all of which require more time for evaluation. The Company is not able to say with certainty whether any of these transactions will be considered, or if considered, entered into, and will provide an update in due course. Any transaction may be subject to definitive documentation, corporate approvals and other regulatory and third-party approvals.
With respect to these changes, we’re looking forward to improving market efficiencies and getting the business to breakeven at an accelerated pace.
DionyMed CEO Ed Fields
We’re excited about finalizing a deal with the right strategic partner and injecting the capital necessary to drive DionyMed forward as a leader in the cannabis industry.
The Company is also announcing that Gotham Green has issued a request for repayment of its outstanding balance of US$2.2 MM representing the credit advance made on July 30, 2019 plus accrued and unpaid interest.
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Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at DYME.com and follow @DYME_Inc on Twitter and LinkedIn.