Entourage Health Receives Additional $15 Million Funding by Upsizing Existing Credit Facility

Entourage Health and LiUNA Pension Fund Upsize Credit Facility with Additional $15 Million in Funding Availability

TORONTO, April 29, 2022 (GLOBE NEWSWIRE) — Entourage Health Corp. (formerly WeedMD Inc.) (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) (“Entourage” or the “Company”), a Canadian producer and distributor of award-winning cannabis products and brands, is pleased to announce it has amended and upsized its existing credit facility (the “Credit Facility”) with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (“LPF”), adding an additional $15 million in funding availability. The Credit Facility will be used by Entourage for general working capital purposes as the Company continues to execute a balanced approach to achieving sustainable profitable growth by the end of 2022.

Entourage is proud of its long-standing reputation in producing premium cannabis products for the Canadian medical and retail markets. More recently, we have been reporting positive operating results reflective of the business transformation initiatives undertaken over the past year to reduce costs, increase quality points and expand our market share.

George Scorsis, CEO and Executive Chairman

Moving ahead, we are committed to executing on our strategic growth plans to reaching our revenue targets and solidifying our positioning in the industry as a top 10 producer. We value the confidence and support shown by our trusted partner and strategic investor LiUNA Pension Fund with this additional financing that does not dilute our shareholder base and supports our future growth. We will maintain our disciplined approach to reaching sustainable commercial growth by the end of 2022.

Credit Facility Terms

The Credit Facility continues to bear an interest rate of 15.25% with the option, at the Company’s discretion, to capitalize interest in lieu of cash payments of interest and is set to mature in August, 2022. The Credit Facility is secured by the assets of the Company and its subsidiaries, including the Company’s production facilities, and contains customary financial and other covenants, as well as typical conditions precedent for a transaction of this nature. LPF’s security under the Credit Facility is in second position to the Company’s senior creditor.

In addition to the new funding provided under the Credit Facility, the Company and LPF agreed to defer certain of the Company’s financial covenants to May 31, 2022.

A copy of the Credit Facility amendment will be made available under the Company’s profile on SEDAR at www.sedar.com.

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 amending of the Credit Agreement 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 amended Credit Agreement due to the timing of the announcement and closing thereof occurring in less than 21 days.

Visit Entourage Health’s newly launched website here. To access our corporate video, visit us here and to access our latest investor presentation and corporate deck here.

About Entourage Health Corp.

Entourage Health Corp. is the publicly traded parent company of Entourage Brands Corp. (formerly WeedMD RX Inc.) and CannTx Life Sciences Inc., licence holders producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a state-of-the-art hybrid greenhouse and processing facility located on 158-acres in Strathroy, ON; a fully licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction; and a micropropagation, tissue culture and genetics centre-of-excellence in Guelph, Ontario. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channeled 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 Royal City Cannabis Co. – sold across eight provincial distribution agencies. The Company also maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart. It is the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels. Under a collaboration with The Boston Beer Company subsidiary, Entourage is also the exclusive distributor of cannabis-infused beverages in Canada, expected to launch in 2022.

For more information, please visit us at www.entouragehealthcorp.com

Original press release

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Published by NCV Newswire
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