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Long-Term Debt and Revolving Credit Arrangement
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Long-Term Debt and Revolving Credit Arrangement
11.
LONG-TERM DEBT AND REVOLVING CREDIT ARRANGEMENT

 

 

 

September 30, 2022

 

 

December 31, 2021

 

Term Loan - ("FCC Loan") - repayable by monthly principle of payments of $164 and accrued interest at a rate of 3.746%; matures April 1, 2025

 

$

25,258

 

 

$

26,723

 

Term Loan - VFCE: CA$3.0M - non-revolving fixed rate loan with fixed interest rate of 4.98%; matures June 2023

 

 

—

 

 

 

491

 

Term Loan - Pure Sunfarms - CA$19.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount, interest rate of 4.2%; matures February, 2024

 

 

9,825

 

 

 

11,870

 

Term loan - Pure Sunfarms - CA$25.0M - Canadian prime interest rate plus an applicable margin, repayable in quarterly payments equal to 2.50% of the outstanding principal amount starting June 30, 2021, interest rate of 4.2%; matures February 2024

 

 

15,010

 

 

 

17,806

 

BDC Facility - Pure Sunfarms - non-revolving demand loan at prime interest plus 3.75%, matures December 31, 2031

 

 

4,207

 

 

 

4,946

 

Total

 

$

54,300

 

 

$

61,836

 

 

The Company’s line of credit (“Operating Loan”) had $4,000 amount drawn on the facility as of September 30, 2022, while there was no amount drawn as of December 31, 2021.

The carrying value of the assets and securities pledged as collateral for the FCC Loan as of September 30, 2022 and December 31, 2021 was $214,053 and $233,187, respectively.

The carrying value of the assets pledged as collateral for the Operating Loan as of September 30, 2022 and December 31, 2021 was $35,421 and $34,741, respectively.

On March 2, 2022, the Company repaid the outstanding balance on the VFCE Term Loan and related advance balance on term loan.

The Pure Sunfarms line of credit had $3,650 and $7,760 outstanding as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022 and December 31, 2021, Pure Sunfarms had an outstanding letter of credit issued to BC Hydro against the revolving line of credit of $C5,145.

The Company was in compliance with all of its credit facility covenants as of September 30, 2022.

The weighted average annual interest rate on short-term borrowings as of September 30, 2022 and December 31, 2021 was 7.95% and 5.15%, respectively.

Accrued interest payable on the Credit Facilities and loans as of September 30, 2022 and December 31, 2021 was $326 and $304, respectively, and these amounts are included in accrued liabilities in the Condensed Interim Statements of Financial Position. The Company is required to comply with financial covenants, measured either quarterly or annually depending on the covenant. As of September 30, 2022 the Company was in compliance with the financial covenants.

The aggregate annual maturities of long-term debt for the remainder of 2022 and thereafter are as follows:

 

Remainder of 2022

 

$

1,782

 

2023

 

 

7,012

 

2024

 

 

24,299

 

2025

 

 

22,729

 

2026

 

 

609

 

Thereafter

 

 

2,621

 

Total

 

$

59,052