Fire & Flower retires $10 million of ATB debt facilities early

Chicago, Oct. 25 – Fire & Flower Holdings Corp. announced the prepayment of credit facilities provided by ATB Financial, according to a press release.

The facilities were initially extended as two separate loans on a two-year term on April 21, 2020.

The facilities comprised a $5 million revolver and a $5 million term loan.

Before prepayment, the company had $2.3 million outstanding under the term loan and nothing drawn on the revolver.

The company also had $3.9 million in restricted cash in collateral and reserve accounts held by ATB as security for repayment of interest, fees and principal.

The outstanding debt was repaid from cash held in a restricted collateral account.

The net cash in those accounts may be redeployed by the company for its near-term growth and investment activities.

The facilities were repaid early without penalty.

After the repayment, the company’s only long-term debt obligations are approximately $2.4 million of 8% convertible debentures outstanding to 2707031 Ontario Inc. which mature on June 30, 2023.

Previously, the company converted $23.6 million of the convertibles outstanding to 2707031 Ontario.

Edmonton, Alta.-based Fire & Flower is a cannabis retailer.

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