Multi-Million Dollar Real Estate Deal Slashes Debt For Toronto Cannabis Maker
Portfolio Pulse from Jelena Martinovic
Heritage Cannabis Holdings Corp. (OTCQX:HERTF) has agreed to sell its real estate properties in Ontario and British Columbia to BJK Developments Ltd. for $9,714,475 and lease them back. The deal will reduce Heritage's term debt by about 64% to $5,256,379. The company also retains an option to repurchase the properties for two years. The remaining term financing has been extended to Jan. 31, 2025. Heritage also retains its revolving line of credit of up to $5 million with BJK.

October 31, 2023 | 1:20 pm
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Heritage Cannabis' sale of properties and leaseback agreement with BJK Developments will significantly reduce its term debt, improving its financial position.
The sale of properties will provide Heritage Cannabis with immediate cash, which will be used to reduce its term debt. This will improve the company's financial health and could make it more attractive to investors. The leaseback agreement allows the company to continue operating from the properties, ensuring business continuity.
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