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Entourage Health Corp V.ENTG

Alternate Symbol(s):  ETRGF

Entourage Health Corp. is a Canada-based license holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 26,000 square feet indoor facility in Aylmer, Ontario (the Aylmer Facility), specializing in product development and fulfillment for both adult-use and medical cannabis. The Company is focused on building a portfolio of brands in the Canadian market, including its brand Color Cannabis, mainstream brand Saturday Cannabis, medical cannabis product brand Starseed Medicinal and its craft cannabis brand Syndicate Cannabis. The Company produces a diverse portfolio of cannabis and cannabis derivative products, including oils, capsules, soft chews, topicals, beverages and vapes, for sale in both the medical and adult-use markets across Canada. Its elite adult-use product portfolio also includes Dime Bag a pre-roll offering, sold across eight provincial distribution agencies.


TSXV:ENTG - Post by User

Comment by Lifexprton Mar 04, 2021 10:11am
116 Views
Post# 32714105

RE:My comments about WeedMD.....( but I could be wrong.)

RE:My comments about WeedMD.....( but I could be wrong.)
It all depends on them reaching profitability. I have some hope that it may happen soon as otherwise cannacord wouldn't push their clients into this. Like I said before the debt will have to be restructured but I am still puzzled where that $30 million went as I was sure we would not need additional financing. Like I said before it's a buy low 30's but the risk is high. Below is a detailed breakdown of what is due and when, copied from Facebook post. They have $39M in the secured credit facilities. These credit facilities mature on March 29, 2022. The remaining balance is due then. It might not even get that far. They will be in default of covenants again on June 30th of this year. BMO extended the terms another 12 months last year in exchange for a bump in interest. No assurances they don't call the loan in June. Convertible debentures of over $12M come due September 25, 2022. And then there is LPF. Why did they agree to a secondary lien behind BMO for their last $30M? Once they pay off BMO, they will own WeedMD. The LPF loan at 15% interest that will bump to 20% interest when they default matures in August of 2022. Do you see the timing of all of this? They will need over $80M cash NEXT YEAR to pay off debt coming due. They are still losing money, but if they can barely break even within a year, they still can't come up with $80M. It is all set up for WeedMD to need to seek creditor protection next year. The truth is out there. Read the financials for yourself and see when all of this debt matures and needs to be paid off. The capital structure is blown up and can't be fixed. There will be some trades available in the next year, but if people aren't reducing risk on the baseless pops then they deserve to lose everything when this ship goes down.
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