## Body and Mind Secures $2.3 Million Credit Facility to Fuel US Expansion
Body and Mind Inc. (BAMM, BMMJ), a leading multi-state cannabis company, has announced a strategic move to bolster its US expansion plans. The company has secured a new credit facility from Bengal Catalyst Fund, LP, providing up to $2.3 million in funding. This financial boost will be instrumental in supporting the development of key dispensary projects in Illinois and New Jersey, two states with burgeoning cannabis markets.
The credit facility is not just about building new dispensaries; it’s about optimizing the company’s overall operations and maximizing shareholder value. Michael Mills, CEO of Body and Mind, highlighted this strategic focus, stating, “The credit facility agreement gives the company flexibility to accomplish its near-term objectives of rationalizing its asset base and protecting shareholder value, which includes supporting the development of its in-process dispensary projects in Illinois and New Jersey.”
The company also mentioned a significant contingent payment of US$2.5 million related to a potential second retail license in Ohio, showcasing their commitment to expanding their reach across key markets.
## Credit Facility Terms and Strategic Partnerships
The credit facility agreement with Bengal Catalyst Fund carries an annual interest rate of 18% and is available for up to one year, with a maturity date set two years from the first draw. Body and Mind has also taken steps to solidify its existing financial relationships. The company has amended its convertible debentures with Bengal and related funds, adjusting the interest rate to 15%, paid half in cash and half in kind. Notably, these debentures, previously unsecured, are now secured alongside the new credit facility, granting Bengal priority in any repayment scenario.
## Regulatory and Financial Context
The credit facility agreement aligns with the company’s commitment to responsible growth and financial stability. As a related party transaction under Multilateral Instrument 61-101, the company secured exemptions from formal valuation and minority approval. Body and Mind’s independent board members unanimously supported the transaction, recognizing its significance in bolstering the company’s financial position and driving its growth strategy in the competitive U.S. cannabis market. This strategic move underscores Body and Mind’s proactive approach to navigating the evolving cannabis landscape and solidifies its position as a major player in the industry.
