Odd Burger secures second line of credit
The company will use the second credit facility to accelerate the growth of its consumer-packaged goods line which launched in September 2023.
January 3, 2024 | By MRO Magazine
Odd Burger Corporation has entered into a credit agreement with GGC Holdings Ltd. in the amount of CAD$250,000. This is the company’s second credit agreement announced in the past month and the company now has access to a total of CAD$500,000 in credit facilities.
The second credit facility has an initial drawdown fee of $1,500 and will bear interest at a rate of 15 per cent per annum, maturing one year from issuance on December 15, 2024. The principal amount under the second credit facility is convertible into common shares of the company at the discretion of the lender at a price of $0.25 per common share and is secured against all of the company’s assets pursuant to a general security agreement. The loan will be paid off in full in the event of a Nasdaq up-listing and associated capital raise. The lender is an arm’s length party to the company.
The company will use the second credit facility to accelerate the growth of its consumer-packaged goods line which launched in September 2023, support the company’s franchise expansion in Canada, the U.S. and abroad and for general working capital purposes.
“We are incredibly excited to work with the people at GGC Holdings,” said James McInnes, CEO and co-founder at Odd Burger. “Access to an operating line of credit is essential for our growth, especially as we shift more focus to our consumer-packaged goods line.”
The credit facility is subject to final TSXV acceptance.