Aphria secures $6 million loan facility
July 25, 2016
Planning for continued capacity growth
Leamington, Ontario – July 25, 2016 – Aphria Inc. (“Aphria” or the “Company”) (TSX-V: APH or US OTCQB: APHQF) announced today that it closed on a $6 million financing with WFCU Credit Union (“WFCU”). The financing is comprised of three separate facilities: a mortgage; a term loan; and an operating line of credit. At closing, Aphria drew $5,000,000 under the various facilities.
The mortgage facility is for $3,750,000 bearing interest at 3.95%, with a 20-year amortization and a 5-year term. The term loan is for $1,250,000 bearing interest at 3.99%, with a 10-year amortization and a 5-year term. The operating line of credit is for $1,000,000, bearing interest at WFCU’s prime lending rate plus 75 basis points and revolves annually. The facilities were entered into on July 22, 2016.
The financing is secured by a first charge on the Company’s real estate holdings, a first position on a general security agreement and assignment of fire insurance to the lender.
“The Aphria success story continues to resonate with all stakeholders“, said Vic Neufeld, Chief Executive Officer, “With our Part II expansion already in progress and fully funded, this financing provides us an even larger war chest for strategic opportunities as they present themselves or our contemplated Part III expansion. The opportunity to partner with WFCU, an organization that is growing and dominating its own market, much like Aphria, cements Aphria’s objective of always moving forward and up-market with all our activities.”
Aphria Inc., one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. We are committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. We are the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
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