The Bridge Facility is secured by general security agreements over the Company's, and its United Greeneries subsidiaries', assets (the "Assets"), as well as guarantees provided by the United Greeneries subsidiaries. In order to facilitate the availability of the Bridge Facility, MMJ Group Holdings Limited has agreed to subordinate its security interest in certain of the Assets, to Costa LLP. (From press release)
My Take: This is for $1.5M of temporary money from the buyer until closing. And MMJ agrees to be subordinate so they must be cash short. Strange!