Organigram Holdings (OGI) said Friday that it has closed its previously announced $140 million credit facility with Bank of Montreal (BMO) as lead arranger and agent as well as a syndicate including three other lenders.

The facility consists of a $115 million term loan and a $25 million revolving credit facility, both of which mature in 2022. It includes an uncommitted option to increase the facilities by $35 million to $175 million.

The facilities are secured by assets of Organigram and its subsidiaries, which primarily consists of the Moncton campus production facility that is projected to be able to produce dried flower or equivalent cannabis of approximately 113,000 kilograms per year by the end 2019.

The proceeds of the term loan will be used to fund the Phase 4 and 5 expansions of the Moncton campus, and refinance the company’s existing long-term debt with arm Credit Canada. Meanwhile, the revolving credit facility may be used for general corporate and working capital purposes.

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