Body and Mind fights for survival with new credit facility

Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) or BAMM is valiantly fighting for survival as the company announced that it received a credit facility agreement with Bengal Catalyst Fund, LP for up to $2.3 million, which the company said is intended to be fully drawn down. While telling investors about the loan, the company said that each of the directors, other than Joshua Rosen who abstained, determined that the company was in ‘serious financial difficulty.’

“The credit facility agreement gives the company flexibility to accomplish its near-term objectives of rationalizing its asset base and protecting shareholder value, which includes supporting the development of its in-process dispensary projects in Illinois and New Jersey,” stated Michael Mills, CEO of Body and Mind. “Additionally, when we sold our Ohio dispensary, we negotiated a $2.5 million contingent payment should a second retail license be awarded and subsequently opened,” Mills added that it looked like the buyer was planning to add that second dispensary and that BAMM could get that additional payment in early 2025.

Downgraded at the OTC

In August BAMM told investors that its shares of common stock stopped trading on the OTCQB Venture Market and began trading on the Pink Open Market operated by OTC Markets Group Inc. under the same symbol of “BMMJ”. However, due to the lack of trading on the OTCQB, the company decided to not continue with the posting of its shares of common stock on the OTCQB. The company said its shares of common stock would still continue to trade on the Canadian Securities Exchange under the symbol “BAMM”

Cash pressures

BAMM last reported earnings in June when the company reported a net loss of $2.5 million for its third fiscal quarter of 2024, which ended April 30. Green Market Report wrote that the company posted $4.4 million in total revenue, up year-over-year from $4.1 million. That brings the fiscal year total revenue to $13.3 million, also up year-over-year from $13.2 million. But operating costs totaled $7.7 million for the quarter, ultimately forcing Body and Mind into loss territory.

The company also reported at the time that it was a going concern and was down to $291,543 in cash and a working capital deficit of $5,411,007. The company had $28 million in total liabilities at that time.

Looking ahead

Looking ahead, the company has said that its Markham Ilinois dispensary continues to show growth with new customers and increased transactions each month. Construction is complete on the Lynwood, Ilinois dispensary. The dispensary is roughly one mile from the border of Indiana. The company received the New Jersey Annual license for BaM Body and Mind Dispensary NJ, Inc. The dispensary will be 4,000 square feet with more than 100 parking places. The dispensary in Lawrenceville is in a jurisdiction that has approved only two dispensaries and is on the main US 1 (Brunswick Pike) corridor with over 35,000 cars per day passing by.