The loan has an interest rate of 15% per annum and will be paid in arrears within 60 days of the issue date, subject to certain exceptions. As part of the deal, Harvest One will grant MMJ a security interest in all current and after-acquired property of the company and certain of its subsidiaries.
Harvest One intends to use the proceeds from the loan for general corporate purposes, including the development and rollout of the company’s Cannabis 2.0 product line.
“This short-term loan provides us with the flexibility needed to continue the implementation of our enhanced strategic plan while continuing to evaluate longer-term financing options,” Harvest One CEO Grant Froese stated.
Harvest One is focused on building its existing infused products, including the manufacturing of its Satipharm Gelpell capsules in Canada, cannabis-infused Dream Water and LivRelief products, vape pens and other derivative offerings. The company is also reviewing its non-core assets and could sell these non-core assets to support the expansion of its core business lines and operational strengths.
MMJ holds around 25.8% of the company’s issued and outstanding common shares.