Hillmount Capital provided DIP financing to Pure Global Cannabis Inc. pursuant to the initial court order granted under the company’s CCAA proceedings. The bridge loan was provided to the cannabis producer and consumer products manufacturer (with real estate assets) for working capital and the liquidity required for the company’s operations to continue during the proceedings.
Pure Global is a licensed cannabis producer in Ontario who on March 19, 2020, obtained protection under the Companies’ Creditors Arrangement Act (CCAA). EY is the Court-appointed Monitor. Counsel is Weisz Fell Kour LLP for Pure Global, Osler for the Monitor, Fred Tayar & Associates for the DIP lender Hillmount Capital, and Cassels for 2056706 Ontario in respect to 237A Advance, Keyser Mason Ball for Kozo Holdings in respect to 237B Advance, and McMillan for Cancor Debt Agency.
The company will continue to operate during the CCAA proceedings with the liquidity provided by the DIP facility but without a stay of proceedings and interim financing, they would face a cessation of operations.
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.