EMH news! On February 1, 2019, Nemus Bioscience, Inc., a Nevada corporation (the “Company”), effected a second drawdown in the amount of $2,000,000 (the “Drawdown”) pursuant to the Multi Draw Credit Agreement dated October 5, 2018 (the “Credit Agreement”), by and between the Company and Emerald Health Sciences Inc. (“Emerald”). The Company intends to use the net proceeds of the Drawdown for general corporate and working capital purposes.
The Credit Agreement provides for a revolving credit facility to the Company of up to $20,000,000, and is unsecured. As of February 1, 2019, the Company has drawn down a total principal amount of $4,000,000 from the credit facility. Pursuant to the terms of the Credit Agreement, the loan bears interest at 7% per annum and matures on October 5, 2022, unless earlier converted into shares of the Company’s common stock. Upon the occurrence of an Event of Default, as defined in the Credit Agreement, Emerald may declare the entire outstanding principal amount of the loan, together with all accrued and unpaid interest thereon, immediately due and payable.