Entourage Health Expands Senior Secured Credit Facility

LOS ANGELES- Entourage Health Corp., a Canadian producer and distributor of cannabis products, has amended its senior secured credit facility. The amendment increases the subordinated credit facility by approximately $3 million, with the funds advanced in a single draw. Additionally, the maturity date for both the senior secured and subordinated facilities has been extended to December 31, 2025. ​

The lender for both facilities is 2437653 Ontario Inc., a related party of the LiUNA Pension Fund of Central and Eastern Canada (LPF). LPF is an insider of the company, holding more than 10% of its common shares. Consequently, the amendment is classified as a “related party transaction” under Multilateral Instrument 61-101. The company has stated that the terms of the credit facility are reasonable and comparable to those that could be obtained from an arm’s length party.

Entourage Health Corp. operates a 26,000 square foot processing facility in Aylmer, Ontario. The company offers a range of cannabis products under brands such as Starseed Medicinal, Color Cannabis, and Saturday Cannabis. It has also established exclusive partnerships, including with LPF, to enhance its distribution channels.

The company has received a forbearance letter from LPF, waiving breaches under the credit facilities until the earlier of the termination of the previously announced Arrangement Agreement dated December 30, 2024, the completion of the transactions contemplated in the Arrangement Agreement, or April 9, 2025, subject to certain conditions.