Auxly Announces Signing Of Term Sheet For $84 Million Credit Facilities Through Its Joint Venture Partner, Sunens Farms Inc.
August 14 2019 - 7:30AM
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 & CEOAbout
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/.
Investor Relations:
For investor enquiries please contact our
Investor Relations Team: Email: IR@auxly.comPhone:
1.833.695.2414
Media Enquiries
(only):
For media enquiries or to set up an interview
please contact:Sarah Bain, VP External Affairs Email:
sarah@auxly.com Phone: 613.230.5869Notice Regarding
Forward Looking Information:
This news release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities law. Forward-looking information is frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
information that certain events or conditions "may" or "will"
occur. This information is only a prediction. Various assumptions
were used in drawing the conclusions or making the projections
contained in the forward-looking information throughout this news
release. Forward-looking information includes, but is not limited
to: anticipated closing date of the transaction; timeline for the
build-out, licensing and commercialization of the Sunens facility;
and competition and other risks affecting the Company in particular
and the cannabis industry generally.
A number of factors could cause actual results
to differ materially from a conclusion, forecast or projection
contained in the forward-looking information in this release
including, but not limited to, whether: satisfaction of the closing
conditions relating to the transaction; the timing of the build-out
and licensing of the Sunens facility; and general economic,
financial market, regulatory and political conditions in which the
Company operates will remain the same. Additional risk factors are
disclosed in the revised annual information form of the Company for
the financial year ended December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is
not possible for management to predict all of those factors or to
assess in advance the impact of each such factor on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking information. The forward-looking
information in this release is based on information currently
available and what management believes are reasonable assumptions.
Forward-looking information speaks only to such assumptions as of
the date of this release. In addition, this release may contain
forward-looking information attributed to third party industry
sources, the accuracy of which has not been verified by the
Company. The purpose of forward-looking information is to provide
the reader with a description of management's expectations, and
such forward-looking information may not be appropriate for any
other purpose. Readers should not place undue reliance on
forward-looking information contained in this release.
The forward-looking information contained in
this release is expressly qualified by the foregoing cautionary
statements and is made as of the date of this release. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking information to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Auxly Cannabis (TSXV:XLY)
Historical Stock Chart
From Apr 2024 to May 2024
Auxly Cannabis (TSXV:XLY)
Historical Stock Chart
From May 2023 to May 2024