Irwin Naturals Inc said it has secured a credit facility with its existing commercial lender for up to $60 million, with $40 million already committed, to support its current operations and the rollup of its psychedelic mental health clinics.
The company said the interest rate shall be variable based on the margins of the credit facilities.
Half of the facility is in place until August 2023, with a maturity date of February 2028, while half of the facility is designed to support day-to-day operations and is in place until February 2028, it added.
READ: Irwin Naturals announces LOI to acquire Braxia Scientific to create new market leader
Irwin Naturals CEO Klee Irwin said this low-interest line of credit from its commercial bank was a vote of confidence from conservative business thinkers.
“And this is not just a vote of confidence in our business model. It is an endorsement of management’s ability to execute and continue leading within the mental health care sector,” he said.
Irwin Naturals president Adam Berk added that this financing was transformational for the company.
“It accelerates Irwin Naturals’ ability to expand our national psychedelic mental health clinic footprint and supercharge the velocity of closings of deals in a large M&A pipeline,” Berk said.
“We believe low-cost debt financing at this stage of our expansion will be optimally accretive and minimally dilutive for our shareholders.”
Irwin Naturals, a herbal supplement formulator since 1994, has expanded into the cannabis and psychedelic sectors. Its growing portfolio of herbal products is available in more than 100,000 retail doors across North America.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie