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Auxly Announces Signing Of Term Sheet For $84 Million Credit Facilities Through Its Joint Venture Partner, Sunens Farms Inc.
August 14, 2019
Source: Globe Newswire
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to announce that its joint venture partner, Sunens Farms Inc. (“Sunens”), has entered into a term sheet for a syndicated credit facility, with the Bank of Montreal (“BMO”) as Lead Underwriter and, subject to the satisfaction of certain customary closing conditions and the finalization of definitive loan documentation, expects to receive debt financing in the aggregate amount of approximately $84 million. The syndicated senior debt facility will be for $71.5 million (the “Credit Facility”) for a three-year term together with a BMO $12.5 million leasing facility (the “Leasing Facility”).
Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ontario. The proceeds of the Credit Facility will be used to fund phase one of the Sunens facility, which is expected to be substantially completed by December 2019. The Leasing Facility will finance processing equipment.
Peter Quiring, CEO of Sunens, commented: “Construction of Sunens is well underway and we couldn’t be more excited to complete the build out of phase one of the project, which will give us over one million square feet of greenhouse space and the ability to deliver approximately 100,000 kgs of cannabis annually commencing on or about the second quarter of 2020.”
The Credit Facility and the Leasing Facility are secured by the Sunens facility, partially guaranteed by the Company and contain customary financial and restrictive covenants. The Company expects the transaction to close in the third quarter of this year.
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly's experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.
Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
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Sarah Bain, VP External Affairs