HENDERSON, NV, Jul. 01 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Grove, Inc. (NASDAQ: GRVI) (“Grove” or the “Company”), today announced that it has completed a strategic debt investment to fund the future growth.
Under the terms of the loan, the Company, at the initial closing, drew $7.5 million of the $15 million available. The Company may draw on the balance if necessary to finance other profitable acquisitions in the future. The loan is amortized over 30 months and bears interest at the rate of 13% per annum, 8.5% payable in cash on the first day of each month below and 3.5% PIK payable each month in arrears. There are fees, financial covenants and prepayment charges associated with the loan, as well as a collateral agreement and other related agreements. As part of the terms of the loan, Grove has also issued a total of 56,250 common stock warrants, which are exercisable at $4.44 per share. Amounts outstanding under the loan are convertible at the investor’s option into common shares of the Company at a fixed price of $7.06 per share.
Concurrent with the initial closing of the credit facility, the Company also received a $1.5 million loan from CEO Allan Marshall on similar terms, with the same amortization schedule, fees and interest, but without conversion function.
CEO Allan Marshall said: “Since our IPO last June, we have driven growth and increased profitability. Our commitment to our shareholders is evident in this type of financing and management believes that the company’s current cash flows should be able to support this transaction. The capital available through this financing will be key to growing our Upexi brand aggregation strategy. I am delighted to commit more capital alongside our investors and look forward to another excellent year of growth and the opportunities that may arise.
About Grove, Inc.
Grove, Inc. is an aggregation innovator, accelerating Amazon and e-commerce businesses by combining consumer data and vertical integration to scale brands across multiple industries, while reducing costs through a growing distribution network. Through strategic acquisitions, Grove continues to expand into numerous consumer markets and uses its in-house SaaS programmatic advertising technology to help reduce cost per acquisition and accumulate consumer data to increase cross-selling among its growing portfolio. brands.
Email: [email protected]
Phone: (702) 332-5591
Email: [email protected]
Phone: (917) 658-2602
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