pcNewsWire – Aphria Inc. (TSX: APH; OTCQB: APHQF) has closed previously announced $25 million term loan with WFCU Credit Union
Aphria Announces Closing of $25 Million Secured Term Loan
LEAMINGTON, ONTARIO–(Marketwired – May 9, 2017) –
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Aphria Inc. (“Aphria” or the “Company”) (TSX:APH)(OTCQB:APHQF) announced that it has closed on its previously announced five-year, $25 million term loan with WFCU Credit Union (“WFCU”) bearing interest at 3.95% and a 15-year amortization. At closing, Aphria drew the full $25 million. The facility was entered into on May 8, 2017.
Along with the net proceeds from a $75 million bought deal equity financing announced simultaneously on April 20, 2017, the net proceeds from the debt financing will be used to fund the remaining portion of the Part IV Expansion, working capital necessary to support the Company once the Part IV expansion is complete and strategic investments.
The term loan is secured by a first charge on the Company’s real estate holdings, a first position on a general security agreement, certain cash security and an assignment of fire insurance to the lender.
“The closing of this transaction accelerates Aphria’s aggressive growth strategy,” said Vic Neufeld, Chief Executive Officer, Aphria. “We are very grateful for WFCU’s support as a financial partner; they have been instrumental to our success to date. This financing will help enable us to meet current and future consumer demand for medical and recreational marijuana and dominate the market.”
“By way of providing a $25 million secured term loan, WFCU Credit Union is pleased to have contributed to Aphria’s impressive growth strategy,” Eddie Francis, President, WFCU Credit Union. “Aphria’s prudent approach to successfully managing the aggressive and rapid growth of the company is a result of an impressive robust business model. Continuing to demonstrate a commitment to the stewardship of its core business, Aphria quickly capitalizes on opportunities within a very dynamic industry.”
We Have a Good Thing Growing.
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. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. Aphria was the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
About WFCU Credit Union
WFCU Credit Union is one of the leading, progressive financial organizations in Southwestern Ontario. Serving Windsor and surrounding communities for over 75 years, WFCU Credit Union manages $2.9 billion in assets and $4.1 billion in member service totals. The credit union is the sixth largest in Ontario, operating nine retail locations in Essex County, serving 36,500 personal, business and organization members. Members outside Essex County and throughout Ontario receive the same great service experience through Omnia Direct, the credit union’s virtual branch. With a long-standing mission to ‘provide services and a full range of highest quality financial products to make our community the best place to live and work’, WFCU Credit Union stands true to its vision ‘WFCU Credit Union – Quality, Convenience, Innovation, Open to Everyone and Yours to Own’. For more information on WFCU Credit Union and Omnia Direct visit wfcu.ca and omniadirect.ca.
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