Vext Science signs for new loan, amends existing loan for acquisition

Chicago, Dec. 15 – Vext Science, Inc. announced financing arrangements related to the upcoming acquisition of Appalachian Pharm Processing, LLC for $12.5 million with $11 million paid in cash or promissory notes and $1.5 million payable through the issuance of common shares, according to a press release.

The company has entered into a loan agreement with an Ohio-based lender for $10 million.

Interest will be at the five-year Treasury rate plus 500 basis points, subject to a 7.5% floor.

The loan will be secured by all of Vext’s assets in Ohio and certain assets in Arizona.

Proceeds are expected to be used for construction and improvements associated with AP Product’s cultivation facility and other general corporate purposes.

The company also amended an existing $22.2 million credit facility that was previously reported, this one with a California-based lender.

Effective Nov. 7, the company amended the $17,185,000 loan to swap the interest rate to a fixed rate at 9.59% from Prime plus 275 basis points with a 6.25% floor.

The second $5 million second-lien secured term loan will continue to have a floating rate at Prime plus 275 bps with a 6.25% floor.

Vext is a Phoenix, Ariz.-based cannabis THC and hemp cannabinoid products company.

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