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Chuck Rich Quoted in The Globe and Mail on Big Banks & Cannabis in the Wake of PharmHouse Deal


Chuck Rich has been quoted in the article “PharmHouse Debt Deal Shows Industry Maturing,” published by The Globe and Mail.

Writes Mark Rendell: “The $80-million credit facility PharmHouse Inc. secured this week from a syndicate that includes Bank of Montreal and Canadian Imperial Bank of Commerce is a significant sign of the cannabis industry maturing, according a lawyer who helped secure the loan.”

Says Chuck: “What you see now is that at least a couple banks are comfortable, and as soon as you have one or more banks becoming comfortable, the other ones don’t have much choice.”

Challenges still remain to debt financing. But Chuck is confident we’ll see more deals like this in the coming months, as cash flow increases for LPs selling into the recreational market, and companies start paying more attention to the dilution that accompanies equity raises.

Read the full article here. (Subscription required.)

Cassels Brock advised PharmHouse Inc. in connection with this matter.