On January 7, 2019, PharmHouse Inc. (“PharmHouse”), a 49%-owned joint venture by Canopy Rivers Inc., entered into a syndicated credit facility (the “Credit Facility”) with Bank of Montreal as agent and lead lender, and with Canadian Imperial Bank of Commerce and Concentra Bank as lenders (together, the “Lenders”).
Under the terms of the Credit Facility, the Lenders will provide PharmHouse up to $80 million of secured debt financing at a rate of interest that is expected to average in the mid-to-high 5% per annum range over its three-year term. This transaction marks one of the first syndicated debt deals in the cannabis sector, one of the first debt deals to involve multiple Schedule 1 banks and one of the first debt deals to a private cannabis company by a Schedule 1 bank.
Cassels Brock & Blackwell LLP acted for PharmHouse with a deal team that included Jonathan Sherman (Cannabis), and Chuck Rich, Hilary Fender and Richard Ngo (Financial Services and Cannabis).
Dentons Canada LLP acted for the Lenders with a deal team composed of Tom Hunter, Alexandra North, Oana Chivaran and Esme Cragg.