Company will use additional capital to
accelerate its growth of Prairie Records retail store locations and
to operationalize its extraction and manufacturing facility
CALGARY, Oct. 2, 2019 /CNW/ - Westleaf Inc. (the
"Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF), is
pleased to announce that it has signed amendment agreements to two
of its existing credit facility commitment letters with ATB
Financial ("ATB") resulting in an additional $5.7 million of capital available for use by the
Company. Westleaf has increased its term loan on The Plant,
its fully completed extraction, manufacturing and product
formulation facility, by $2.7 million
and has secured a $1.0 million
revolving credit facility to assist with working capital provided
that any draw downs in relation thereto can only be made after
final receipt of a standard processing license for The Plant
from Health Canada. In addition, the credit facility related to the
construction of Westleaf's cultivation facility in Battleford, Saskatchewan has been amended to
reduce its restricted cash requirement by $2.0 million.
"ATB continues to be a leader in the lending space for cannabis
companies and remains a strong supporter of Westleaf and its
strategic plan" said Taylor Ethans,
Chief Financial Officer and Head of M&A. "From the beginning of
Westleaf, we have been focused on maintaining an efficient capital
structure with low cost, traditional senior debt to help accelerate
our growth strategy while limiting dilution for existing
shareholders. With the increase in non-dilutive capital, Westleaf
intends to accelerate its footprint of additional Prairie
Record retail cannabis stores and to provide for additional
start-up capital for The Plant."
About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis
brands, extraction and production of derivatives, wholly owned
retail, as well as cannabis cultivation. The Company's extraction
and processing facility, The Plant, will produce high
quality and consistent cannabis derivatives and consumables, both
for Westleaf's in-house brands as well as white label products.
Westleaf's retail concept, Prairie Records, leverages the
instinctual tie between recreational cannabis and music with stores
operating or in development across Western Canada. The
Company's Thunderchild cultivation facility is scheduled for
completion at the end of this year.
Neither TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release
Cautionary Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates and projections as at the date of this news
release. Any statement that involves discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements relate
to, among other things, (i) retail cannabis stores that Westleaf
plans to open, including accelerating Westleaf's footprint of
Prairie Record retail cannabis stores; (ii) the use of capital
available to the Company from ATB, including the timing available
to draw-down on credit facilities with ATB; (iii) the use of
additional capital that is available to the Company from ATB; (iv)
receipt of a standard processing license for The Plant from Health
Canada; (v) the construction of Westleaf's production facilities
and the timing for completion of same. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: risks relating to the ability to
obtain or maintain licences to retail cannabis products; review of
Westleaf's production facilities by Health Canada and receipt of
licences from Health Canada in respect thereof; future legislative
and regulatory developments involving cannabis, including the
passing of regulations regarding derivative cannabis products;
inability to access sufficient capital from internal and external
sources, and/or inability to access sufficient capital on
favourable terms; the labour market generally and the ability to
access, hire and retain employees; the ability of Westleaf's
production facilities to operate and perform at peak production;
general business, economic, competitive, political and social
uncertainties; the satisfaction of conditions precedent under
Westleaf's credit facilities; timing and completion of construction
of Westleaf's production facilities and retail locations; and the
delay or failure to receive board, ATB Financial or regulatory
approvals, including any approvals of the TSX Venture Exchange, as
applicable. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this news
release. Except as required by law, Westleaf assume no obligation
to update the forward-looking statements of beliefs, opinions,
projections, or other factors, should they change, except as
required by law.
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SOURCE Westleaf Inc.