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PharmHouse Completes $80 Million Bank Debt Facility, One of the First Syndicated Debt Deals in the Cannabis Industry

Published: 01/07/2019

Team: Jonathan Sherman, Charles (Chuck) Rich, Richard Ngo

On January 7, 2019, PharmHouse Inc., a 49%-owned joint venture by Canopy Rivers Inc., entered into a syndicated credit facility with Bank of Montreal as agent and lead lender, and with Canadian Imperial Bank of Commerce and Concentra Bank as 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 and one of the first debt deals to involve multiple Schedule 1 banks.

Cassels Brock acted for PharmHouse with a deal team that included Jonathan Sherman (Cannabis) and Chuck Rich, Hilary Fender and Richard Ngo (Financial Services and Cannabis).