DionyMed Brands Offers Financing Update, Announces Reorganization and Resumption of Trading
TORONTO, September 19, 2019–(Business enterprise WIRE)–DionyMed Brands Inc. (“DionyMed” or the “Company”) (CSE:DYME OTCQB:DYMEF), a multi-state cannabis brands, Direct-to-Customer and distribution platform, now announced more investment from its senior secured investor of US$three.2MM and a reorganization of the business enterprise to ideal size the Enterprise. This increases the credit facility with the senior lender to US$19.two MM. The credit facility bears interest at LIBOR (at a floor of two.five%) plus 12% plus an anniversary charge of two.five%, maturing February six, 2021. Whilst the credit facility is at the moment in default, the senior lender has agreed to make more advances to the Enterprise.
In addition, the Enterprise announces a reduction in operating expenditures by way of a targeted reduction of headcount from 299 to 199 permitting the Enterprise to amplify its concentrate on increasing its Direct-to-Customer cannabis delivery service Chill. These improvements, in conjunction with a revamped marketing and advertising method and concentrate on larger-margin items, started in Q3 and will continue by way of 2019.
The Enterprise is also pleased to announce that its shares have resumed trading on the CSE beneath the symbol “DYME”, and on the OTCQB beneath the symbol “DYMEF”. The Enterprise requested a halt in trading when there was a robust possibility it would announce a transaction in the ensuing days even so, many other prospective transactions of numerous forms have surfaced, all of which need far more time for evaluation. The Enterprise is not in a position to say with certainty no matter if any of these transactions will be regarded, or if regarded, entered into, and will supply an update in due course. Any transaction may possibly be topic to definitive documentation, corporate approvals and other regulatory and third-celebration approvals.
With respect to these modifications, we’re hunting forward to enhancing marketplace efficiencies and having the business enterprise to breakeven at an accelerated pace.
DionyMed CEO Ed Fields
We’re excited about finalizing a deal with the ideal strategic companion and injecting the capital vital to drive DionyMed forward as a leader in the cannabis sector.
The Enterprise is also announcing that Gotham Green has issued a request for repayment of its outstanding balance of US$two.two MM representing the credit advance produced on July 30, 2019 plus accrued and unpaid interest.
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Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, producers and award-winning brands in the health-related and adult-use cannabis markets. DionyMed sells branded items in every single category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis shoppers by way of retail dispensary distribution and direct-to-customer fulfillment with its increasing portfolio of award-winning brands. Study far more at DYME.com and adhere to @DYME_Inc on Twitter and LinkedIn.
Original press release