Supreme Cannabis Company Inc. (The) T.FIRE

lenders to amend the three-year term credit facility

[JiffBeasauce]

so i guess this means they are pushing loan payments for 1 year in exchange gor 1.5 % intrerst raise? They say this is positive showing re asurance of the crediter but is it? Or do they see it as there only posibility of getting payed back?  curious on what this says to investers?

[JiffBeasauce]

 0.75% higher intrest not 1.5% ***

[Method]

  It's not unexpected given the bank loan was probably central to the debenture negotiation. The deferral of the covenants gives us some breathing room so FIRE doesn't  breach (accidentally or not) and incur penalties. The 75bp increase in the interest rate is still a rate cut from the beginning of the year since they cut prime by 150bp since March so probably better than

[maritimedreamer]

Would this be a normal course of action as the renegotiation occurred: The requirement for a minimum restricted cash balance has been removed and that balance has been used to repay a portion of the term loan outstanding? I believe they had to withhold 3 mil for this and they now used it to pay a portion of loan off? 

[JiffBeasauce]

intristing, hopefully its a we dont need it situation. The fact they had to amend terms "The requirement for a minimum restricted cash balance has been removed" show that supreme could be low on cash and cash raise coming shortly? I guess If supreme can be profitable right away could run on tight budget in short term, we will find out soon... 

[watchmeplz]

In my opinion, there's no raise with 450m + shares in the kind of economics these LPs are facing, the refinancing was the last move effort trying to buy time while still taking a paycheck. Say it's possible to even keep your head outta water and service that huge debt, how do you ever grow? This co, has a 70m MC, if quarter after quarter your not only servicing debt but making a multiple

[Method]

Actually, the removing the restricted cash requirement means that they aren't worried about their being enough cash to make the payments. Generally, a bank makes a company restrict some cash to protect themselves. It makes more sense to remove the restriction now that the size of the facility has been reduced as well.  I would say that change is a net positive. 

[George141]

..I would like to think that this close to financials this is a show of confidence. The bank must have an indication that the situation is good. I believe that Supreme has finally had a breakout towards profitability. Interest are low now. Mortgages are advertised at 1.79%...We know the utilities for Supreme are the best in the business, the work force is dedicated, the township is 100% behind the

[puppymonkeybaby]

you are a very simple minded old man, arent you George.