Hillmount Capital provided DIP financing to AgMedica Bioscience Inc. and affiliated entities pursuant to the initial 10-day court order granted under the company’s CCAA proceedings. The bridge loan was provided for the cannabis producer (with real estate assets) to pursue and implement their restructuring strategy.
AgMedica is a licensed cannabis producer in Ontario who on December 2, 2019, obtained protection under the Companies’ Creditors Arrangement Act (CCAA). EY is the Court-appointed Monitor. Counsel is TGF for AgMedica, McCarthy Tétrault for the Monitor, Foglers for the DIP lender Hillmount Capital, and BLG for Stabilis.
AgMedica was reportedly aiming to take their company public to compete with other major Canadian players in the cannabis industry. They strategically invested significant amounts of capital to make the IPO but did not see sufficient public investment in the industry to realize it. The company continues operation while under creditor protection and are restructuring to offset their $5M debt.
See the EY website for case details.
Hillmount Capital provides real estate-based alternative financing options to protect asset values and provide working capital to clients who have pressing needs when conventional sources are unavailable.