CannaRoyalty Forms Joint Venture with Investor for $12 Million Financing

CannaRoyalty (CSE:CRZ; OTCQX:CNNRF) announced a binding term sheet with a Canadian institutional investor for a $12 million financing and form a joint venture (JV) option to finance opportunities in the Canadian cannabis market.
As quoted in the press release:

The financing is expected to be comprised of a revolving $12 million secured credit facility with a three year term, of which $6 million will be advanced on closing. The proceeds are expected to be used for specific opportunities that CannaRoyalty is pursuing for production and/or processing assets, as well as general corporate purposes.
The facility will bear interest at an annual rate of 10%, payable quarterly in cash or CannaRoyalty shares. In addition, CannaRoyalty warrants have been issued to the Investor today, which will entitle the Investor to purchase 1.8 million CannaRoyalty shares at an exercise price of $2.05 per share for a period of three years after closing.
The JV is expected to be launched following the closing of the financing and will focus on investment opportunities in the rapidly growing Canadian cannabis market. The Investor is a Canadian institutional investor who will fund and manage the JV. CannaRoyalty will leverage its relationships and investment pipeline to identify and refer attractive Canadian opportunities such as production assets, property and equipment to the JV and also assist the Investor in completing due diligence and providing strategic support to JV investments.

Click here to read the full press release.

Source: www.marketwired.com