TORONTO, June 19, 2023 (GLOBE NEWSWIRE) -- Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) (FSE: 4WE) ("Entourage" or the "Company"), a Canadian producer and distributor of award-winning cannabis products, announced today that the Company has partially repaid its senior secured credit facility (the “Credit Facility”) with Bank of Montreal ("BMO") from the net proceeds of the sale of its Strathroy facility and cash, and that the remaining balance of the Credit Facility of approximately $14.6 million has been assumed by its other senior secured lender, an affiliate of the LiUNA Pension Fund of Central and Eastern Canada ("LPF"), allowing for the full repayment of BMO. In connection with the assignment of BMO’s rights, interests and obligations under the Credit Facility, BMO has also assigned certain related security of the Company. Following such assignment, the Company has no further obligations to BMO under the terms of the Credit Facility and the related security and obligations previously existing in favour of BMO have been assigned to LPF. The terms of the Credit Facility were not amended in connection with the assignment. By restructuring its senior secured debt, the Company simplifies its capital structure in line with the strategic decisions made to simplify its business operations.
The Company previously announced it would be ceasing its cultivation activities and has signed a three-year supply agreement with HEXO Corp. to buy bulk cannabis for its expanding retail distribution and increased medical offerings. The Company recently closed the sale of its Strathroy facility enabling the Company to achieve greater financial flexibility. The Company has also entered into a two-year agreement with the University of Guelph to store its genetics in-vitro and conduct research on its proprietary genetics. This collaboration allows the Company to ensure that the maintenance and advancement of proprietary genetics continue to be a priority for its long-term business model.
"Through diligent financial management and strategic planning, we have completed the restructuring of our senior debt facilities. This achievement demonstrates our commitment to fiscal responsibility, simplification of our business at the operational and corporate level and paves the way for future growth opportunities with fewer restrictions," stated George Scorsis, CEO and Executive Chairman of Entourage. "With our operations centralized at our production site in Aylmer, we have achieved full optimization and efficiency in our processes. The initiatives have already shown promising results, improving productivity and reducing production costs, aligning with the long-term best interests of our patients, customers, and shareholders."
About Entourage Health Corp.
Entourage Health Corp. is the publicly traded parent Company of Entourage Brands Corp., a licence holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a fully licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements Entourage’s direct sales to medical patients. With the launch of Syndicate, Entourage now hosts another unique medical marketplace that offers patients a collective of Canadian micro-cultivators’ products, along with Entourage’s family of brands. Entourage’s elite adult-use product portfolio includes Color Cannabis and Saturday Cannabis – sold across eight provincial distribution agencies. It is the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels. Under a collaboration with The Boston Beer Company subsidiary, Entourage is also the exclusive distributor of cannabis-infused beverages ‘TeaPot’ in Canada, which launched in summer 2022, starting in select provinces. In addition, Entourage also entered into an exclusive agreement with Irwin Naturals, a renowned nutraceutical and herbal supplement formulator of popular branded wellness products sold across North America. The new line of CBD soft gels is now available on Starseed’s medical platform.
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