TORONTO, June 19, 2023 (GLOBE NEWSWIRE) — Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) (FSE: 4WE) (“Entourage” or the “Company“), a Canadian producer and distributor of award-winning cannabis products, announced today that the Company has partially repaid its senior secured credit facility (the “Credit Facility”) with Bank of Montreal (“BMO“) from the net proceeds of the sale of its Strathroy facility and cash, and that the remaining balance of the Credit Facility of approximately $14.6 million has been assumed by its other senior secured lender, an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (“LPF“), allowing for the full repayment of BMO. In connection with the assignment of BMO’s rights, interests and obligations under the Credit Facility, BMO has also assigned certain related security of the Company. Following such assignment, the Company has no further obligations to BMO under the terms of the Credit Facility and the related security and obligations previously existing in favour of BMO have been assigned to LPF. The terms of the Credit Facility were not amended in connection with the assignment. By restructuring its senior secured debt, the Company simplifies its capital structure in line with the strategic decisions made to simplify its business operations.
The Company previously announced it would be ceasing its cultivation activities and has signed a three-year supply agreement with HEXO Corp. to buy bulk cannabis for its expanding retail distribution and increased medical offerings. The Company recently closed the sale of its Strathroy facility enabling the Company to achieve greater financial flexibility. The Company has also entered into a two-year agreement with the University of Guelph to store its genetics in-vitro and conduct research on its proprietary genetics. This collaboration allows the Company to ensure that the maintenance and advancement of proprietary genetics continue to be a priority for its long-term business model.
“Through diligent financial management and strategic planning, we have completed the restructuring of our senior debt facilities. This achievement demonstrates our commitment to fiscal responsibility, simplification of our business at the operational and corporate level and paves the way for future growth opportunities with fewer restrictions,” stated George Scorsis, CEO and Executive Chairman of Entourage. “With our operations centralized at our production site in Aylmer, we have achieved full optimization and efficiency in our processes. The initiatives have already shown promising results, improving productivity and reducing production costs, aligning with the long-term best interests of our patients, customers, and shareholders.”
About Entourage Health Corp.
Entourage Health Corp. is the publicly traded parent Company of Entourage Brands Corp., a licence holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a fully licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements Entourage’s direct sales to medical patients. With the launch of Syndicate, Entourage now hosts another unique medical marketplace that offers patients a collective of Canadian micro-cultivators’ products, along with Entourage’s family of brands. Entourage’s elite adult-use product portfolio includes Color Cannabis and Saturday Cannabis – sold across eight provincial distribution agencies. It is the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels. Under a collaboration with The Boston Beer Company subsidiary, Entourage is also the exclusive distributor of cannabis-infused beverages ‘TeaPot’ in Canada, which launched in summer 2022, starting in select provinces. In addition, Entourage also entered into an exclusive agreement with Irwin Naturals, a renowned nutraceutical and herbal supplement formulator of popular branded wellness products sold across North America. The new line of CBD soft gels is now available on Starseed’s medical platform.
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Forward Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified using forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions, and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage’s disclosure documents filed with the applicable Canadian securities’ regulatory authorities on SEDAR atwww.sedar.com. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.