Our client had a strong balance sheet after a recently completed capital raise through a private placement. However, with a supply contract signed with the Société Québécoise du Cannabis (“SQDC”) and the retrofit of Phase 2 of its operation, the Company knew that having access to debt would provide them capital security to fulfill the SQDC order and get Phase 2 up and running.
Welch Capital Partners’ Approach
It was important for us to understand where the Company was in its life cycle and what the objectives of bringing on debt were. It was also important to know when sales would begin and whether access to the debt was required before such time. These considerations helped us narrow down the list of potential lenders.
The Welch Capital Partners’ Advantage
Welch Capital Partners always begins a mandate with getting to understand how a company operates, the industry it operates in and its capital needs. Armed with this understanding, we can narrow our focus on potential debt providers and target the ones that would be good partners for our client. This mandate was no different than the others. We knew we would need to find a lender that understood the cannabis sector. Having had experience with other companies in the cannabis sector we knew the lenders that could play a role in their success. The Company was able to secure a term loan to give it the capital buffer it needed to fulfill its growth ambitions