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VANCOUVER, British Columbia., Jan. 27, 2022 (GLOBE NEWSWIRE) -- BC Craft Supply Co. Ltd., (CSE: CRFT) (“CRFT” or collectively, the “Company”), today announces that further to its news release of January 25, 2022, it has secured an interim financing facility (the “Interim Facility”) from Avro Capital Corp. (“Avro”) which was approved by the Supreme Court of British Columbia pursuant to the terms of a debtor-in-possession financing term sheet between the Company and Avro.
The Interim Facility is in the maximum principal amount of $415,000, which will be comprised of an initial advance of $215,000, with subsequent advances from time to time as agreed upon between the Company and Avro, in an amount not exceeding $200,000. The Interim Facility will finance the continuation of the Company’s operations and allow the Company to meet its obligations in the normal course of business as they become due. In addition, the Interim Facility will assist the Company in funding certain growth initiatives that the Company’s management believe will generate significant revenues through increased sales of products by its distribution partner and other possible channels.
The Interim Facility is secured by a priority Court-ordered charge in the maximum principal amount of $415,000, plus interest of 11.5% per annum, costs, fees and disbursements, ranking in priority to all other encumbrances on the Company’s assets, properties and undertakings, other than an administrative charge. The Interim Facility will mature and be fully repayable on the date that is six (6) months from the date of the first advance, which may be extended if Avro agrees to such extension.
Matt Watters, CEO of the Company stated, “We believe we have captured the most favorable financing arrangement presently available to the Company, that will sufficiently carry us through to the next steps of restructuring the Company and continuing as a viable business moving forward.”
The Company will continue to provide updates on the next steps of the proposal process under the BIA and the Interim Facility as and when they have been determined. Further information about the proceedings will be made available on the proposal trustee's website at https://www.crowemackayco.ca/.
About BC Craft Supply Co. Ltd.
BC Craft Supply Co. Ltd. is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. Its operations include:
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CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market;
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Medcann Health Products - a cultivation and processing facility in Chemainus BC;
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Feelwell Brands, a successful cannabinoid brand house licensed in the state of California; and
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AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms.