Pathway Health (TSX-V:PHC) Corp said it has entered into an agreement with its largest indirect beneficial shareholder Avonlea-Drewry Holdings Inc to establish a $3.5 million credit facility.
The company said it may draw on the available proceeds of the facility and pay without penalty, and that it intends to use the available proceeds for general working capital and potential future acquisition purposes.
The facility has a term of two years secured against Pathway’s assets and pledges of the shares of the company’s subsidiaries and is supported by guarantees of its subsidiaries Pathway Health (TSX-V:PHC) Services Corp, 2563367 Ontario Limited, Pathway Health (TSX-V:PHC)care Technologies Corp, and Slawner Ortho Ltee.
READ: Pathway Health taps C$1.0M capital infusion from Avonlea-Drewry Holdings
According to Pathway, principal amounts outstanding under the facility will bear interest of 12% per annum or a variable rate per annum benchmarked to the Bank of Canada prime rate as of May 1, 2022, plus 8.8%.
The full terms of the credit facility can be found here.
Pathway is one of the largest providers of out-of-hospital pain management services in Canada, owning and operating nine-community based clinics across four provinces.
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