Sundial and Cannabis Wheaton Income Corp. Sign Definitive Agreement for $7 Million in Debt Financing
March 01 2018 - 8:00AM
Sundial Growers Inc. (“Sundial”) is pleased to announce that it has
entered into a definitive agreement with Cannabis Wheaton Income
Corp. (TSX-V:CBW) (“Cannabis Wheaton”) for $7 million in
non-dilutive debt financing. The funding will be used towards the
expansion of Phase 2 of Sundial’s flagship facility in Olds,
Alberta.
“We are moving fast to increase our production capabilities to
meet the expected demand after the legalization of adult-use
cannabis,” explained Sundial Executive Chairman, Ted Hellard. “We
are thrilled to partner with Cannabis Wheaton, which has extensive
experience in and commitment to the cannabis industry. This funding
allows us to continue the expansion of our Olds facility without
diluting share value for investors.”
Under the terms of the agreement, Cannabis Wheaton advanced $7
million to Sundial for a period of six months and this amount can
be repaid either by a cash payment or through the delivery of an
agreed volume of dried cannabis produced by Sundial or through a
combination of cash and cannabis. If the financing is not repaid in
full on or prior to the six-month maturity date, Sundial will have
the option to extend the maturity date by a further six months upon
paying Cannabis Wheaton a penalty amount.
The debt financing will be used to support the second phase of
Sundial’s Olds expansion, where construction recently started and
is expected to be completed by October 2018. Phase 2 will produce
approximately 45 million grams of dry cannabis annually. The Olds
facility will be purpose-built using a unique modular construction
method that will allow Sundial to maximize yields by creating
environments optimized for each strain. Once complete, the facility
will consist of 60 individual climate controlled grow rooms,
allowing the company to minimize the risk of contamination, pests
and disease while maximizing yield.
About Sundial Growers Inc. Sundial Growers Inc.
(“Sundial”) is a privately held, Alberta-based Health Canada
ACMPR-approved licensed producer of medical cannabis. Sundial
combines tried and true heartland farming practices with innovative
horticultural techniques to grow a select range of cannabis
strains. Our focus is on producing consistent cannabis that our
customers can trust.
Sundial currently operates an 31,000 square foot production
facility in Rocky View, Alberta, and has two separate production
facilities in various stages of completion and licensing. By 2020,
we expect to be one of the leading cannabis companies in the
country with a projected production of over 100 million grams of
dry cannabis and over 32 million grams of concentrate or cannabis
extract.
For more information about Sundial Growers Inc., visit
www.sundialgrowers.com.
Media Contact:
Claire Buffone-Blair, Director of Communications & Stakeholder Relations
Sundial Growers Inc.
C: 1.403.471.6378
E: claire@sundialgrowers.com
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