Tilray CEO: Plans to lobby US, Canada for better cannabis distribution
Tilray Inc. has paid off the debt it owed to Bridging Finance Inc., the Toronto-based private lender that’s facing allegations of self-dealing and misappropriation of funds.
Bridging Finance's activities have been in the spotlight this month after Ontario Securities Commission (OSC) staff detailed allegations relating to conflicts of interest, misappropriated funds, and inadequate disclosure. That led the regulator to request the Ontario Superior Court to appoint PricewaterhouseCoopers Inc. to manage Bridging Finance’s affairs. None of the claims have been proven in court or before the OSC.
Tilray first took out a loan facility for its Canadian subsidiary with Bridging Finance in Feb. 2020 that would allow the cannabis producer to borrow up to $79.8 million. The loan came with an annual interest rate of prime plus 8.05 per cent and was set to mature next February.
In a filing Monday, Tilray disclosed that it notified Bridging Finance on Apr. 25 that it intended to repay the loan and terminate any further commitments. According to the filing, Tilray later paid Bridging Finance $64 million of principal; $600,000 in unpaid interest charges; and a pre-payment fee of $1.3 million on May 4.
"As we transition Tilray post (Aphria) transaction, we performed a detailed review of our capital structure," said Tilray Chief Financial Officer Carl Merton in an emailed statement.
"The Bridging loan, while necessary at the time, no longer made fiscal sense for the combined business."
Aside from Tilray, Bridging Finance also loaned money to several other cannabis companies including MJardin Group Inc., Harvest Health and Recreation Inc. and Red White & Bloom Brands Inc.