General form of registration statement for all companies including face-amount certificate companies

DEBT

v3.21.2
DEBT
6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
DEBT    
9. DEBT

9. DEBT

 

Debt at June 30, 2021 and December 31, 2020, was comprised of the following:

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2021

 

 

2020

 

Current portion of long-term debt

 

 

 

 

 

 

Vehicle loans(1)

 

$ 186

 

 

$ 170

 

Note payable(3)

 

 

183

 

 

 

1,043

 

Total short-term debt

 

 

369

 

 

 

1,213

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

 

 

 

 

 

 

Vehicle loans(1)

 

 

162

 

 

 

233

 

Note payable(2)

 

 

56

 

 

 

65

 

Note payable(3)

 

 

40

 

 

 

5

 

Mortgage payable(4)

 

 

8,938

 

 

 

-

 

Convertible debenture(5)

 

 

13,646

 

 

 

13,701

 

Total long-term debt

 

 

22,842

 

 

 

14,004

 

Total Indebtedness

 

$ 23,211

 

 

$ 15,217

 

 

(1) Primarily fixed term loans on transportation vehicles. Weighted average interest rate at June 30, 2021 was 8.1%.

(2) Note payable in connection with Acme acquisition to be paid as and if financial performance targets are met over the earnout period.

(3) Note payable in connection with Humble Flower and Kaizen acquisitions and termination of the W Vapes acquisition. Weighted average interest rate at June 30, 2021 was 4%.

(4) Net of deferred financing costs of $422.

(5) Net of deferred financing costs of $1,879.

 

Stated maturities of debt obligations are as follows as of June 30, 2021:

 

 

 

June 30,

 

(in thousands)

 

2021

 

2021

 

$ 268

 

2022

 

 

321

 

2023

 

 

15,876

 

2024

 

 

383

 

2025

 

 

421

 

2026 and thereafter

 

 

8,113

 

Total debt obligations

 

$ 25,382

 

13. DEBT 

 

Debt at December 31, 2020 and 2019 was comprised of the following:

 

(Amounts Expressed in United States Dollars Unless Otherwise Stated)

 

 

 

December 31,

 

(in thousands)

 

2020

 

 

2019

 

Current portion of long-term debt

 

 

 

 

 

 

Vehicle loans(1)

 

$ 170

 

 

$ 135

 

Note payable(3)

 

 

1,043

 

 

 

-

 

Total short-term debt

 

 

1,213

 

 

 

135

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

 

 

 

 

 

 

Vehicle loans(1)

 

 

233

 

 

 

233

 

Note payable(2)

 

 

65

 

 

 

138

 

Note payable(3)

 

 

5

 

 

 

-

 

Convertible debenture(4)

 

 

13,701

 

 

 

-

 

Total long-term debt

 

 

14,004

 

 

 

371

 

Total Indebtedness

 

$ 15,217

 

 

$ 506

 

_____________

(1) Primarily fixed term loans on transportation vehicles. Weighted average interest rate at December 31, 2020 was 8.8%.

(2) Note payable in connection with Acme acquisition to be paid as and if financial performance targets are met over the earnout period.

(3) Note payable in connection with Humble Flower and Kaizen acquisitions and termination of the W Vapes acquisition. Weighted average interest rate at December 31, 2020 was 4%.

(4) Net of deferred financing costs of $2,300.

 

Stated maturities of debt obligations are as follows:

 

 

 

December 31,

 

(in thousands)

 

2020

 

2020

 

$ 35

 

2021

 

 

1,122

 

2022

 

 

228

 

2023

 

 

16,050

 

2024

 

 

21

 

2025 and thereafter

 

 

6

 

Total debt obligations

 

$ 17,462

 

 

On April 13, 2020, the Company entered into a $15.1 million senior secured convertible debenture and warrant purchase agreement. In late April and May 2020 an additional $1 million was funded to bring the total convertible debenture amount to $16.1 million. The convertible debentures are convertible, at a conversion price of $0.20 per share, into an aggregate of 80.4 million subordinate voting shares of the Company, and the Company issued warrants to purchase an aggregate of 80.4 million subordinate voting shares at an exercise price of $.28 per share. The financing yielded the Company approximately $11.5 million after repayment of $3.8 million in bridge financing received during the first quarter, plus accrued interest thereon, and transaction related expenses of approximately $600. The debentures bear interest at 5.5% per annum and will mature in October 2023, and the warrants expire in October 2023. During 2020, $75 of convertible debentures were converted into 375 thousand subordinate voting shares.