Toronto based Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, has announced last Friday that it has entered into a credit facility with Inmobiliaria Bondue S.A.S. pursuant to which Avicanna will be entitled to borrow up to USD$5,000,000.
Advances made under the credit facility will bear interest at a rate of 8.0% per annum. The credit facility is unsecured and is repayable upon a default by Avicanna or the demand of Bondue. The credit facility is intended to be used for general working capital purposes.
Avicanna CEO Aras Azadian told news outlet Benzinga that “The credit facility provided by our partners in Colombia is designed to ensure that Avicanna continues to execute on its global business plan without interruptions, and with less reliance on the capital markets during this period of correction in the sector”
Bondue is a “related party” with Avicanna and the credit facility is a “related party transaction.” Earlier in the years the two companies announced plans to build a new 11,000 square foot site in a free trade zone in Santa Marta, Colombia. “Inmobiliaria” in the name Inmobiliaria Bondue means “Real Estate” in Spanish.
The operation of the new site will be conducted under a proposed new subsidiary, which will be 60% owned by Avicanna and 40% owned by Inmobiliaria Bondue.
Avicanna’s two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta are the base for Avicanna’s cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).
Avicanna’s research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics and extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.
Above image: Avicanna’s Pura Earth derma-cosmetics line of CBD products are already being sold in retail outlets throughout Colombia.