World News: 12:30 GMT Wednesday 14th August 2019. [Auxly Cannabis Group Inc. via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, Aug. 14, 2019 (GLOBE NEWSWIRE) -- ("" or the "") is pleased to announce that its joint venture partner, Sunens Farms Inc. (“”), has entered into a term sheet for a syndicated credit facility, with the Bank of Montreal (“”) 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 “”) for a three-year term together with a BMO $12.5 million leasing facility (the “”).
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
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 and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
For investor enquiries please contact our Investor Relations Team: Email: Phone: 1.833.695.2414
For media enquiries or to set up an interview please contact:Sarah Bain, VP External Affairs Email: Phone: 613.230.5869
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.
Globe Newswire: 12:30 GMT Wednesday 14th August 2019
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