Canadian cannabis grower WeedMD secured a loan worth 30 million Canadian dollars ($22.5 million) from the LiUNA Pension Fund of Central and Eastern Canada, a retirement plan associated with the Laborers’ International Union of North America.
“This $30 million of nondilutive financing will enhance our liquidity position and provide additional working capital at this inflection point to drive our adult-use brands, add distribution points and expand our sales and marketing team,” WeedMD CEO Angelo Tsebelis said in a news release.
Earlier this month, WeedMD revealed plans to increase the market share of its Color Cannabis and Saturday adult-use marijuana brands, including the launch of an exclusive cultivar along with vape cartridges, pre-rolls and nitrogen-flushed packaging to preserve freshness.
The LiUNA Pension Fund of Central and Eastern Canada, a major WeedMD shareholder, invested CA$25 million in the company earlier this year.
The new CA$30 million credit facility has an interest rate of 15% and matures in August 2022. WeedMD has the option to capitalize the interest in lieu of cash interest payments.
In early July, WeedMD said it had amended the terms of another three-year credit facility worth CA$39 million.
WeedMD reported a net loss of CA$9 million for the quarter ended March 31 on CA$12.2 million in net revenue.
Interim financial statements posted in July warned that WeedMD lacked the cash to fund capital investments and operations over the next year.
The Ontario-based company is due to report delayed second-quarter results on Sept. 30.
Shares of WeedMD trade as WMD on the TSX Venture Exchange.