A lending syndicate led by Bank of Montreal expanded Pure Sunfarms’ credit facility to its full C$59 million ($43.41 million) capacity with the completion of the facility’s accordion feature. The syndicate also includes Farm Credit Canada and CIBC.
The credit facility now consists of a C$15 million ($11.04 million) revolving operating loan and a C$25 million ($18.39 million) term loan, in addition to an existing C$19 million ($13.98 million) loan. The new term loan is specifically designated for the 1.1 million square foot Delta 2 greenhouse while the existing term loan is specifically designated for the 1.1 million square foot Delta 3 greenhouse facility. Each of the components of the credit facility, including the existing term loan, mature on Feb. 7, 2022.
“We are pleased to see the completion of this credit facility by top-tier Canadian commercial lenders, which today is a relatively unique accomplishment in the cannabis space,” Riaz Bandali, CEO of Emerald Health Therapeutics, said. “This facility provides Pure Sunfarms with significant access to capital to continue building on its business successes.”
Pure Sunfarms is Emerald Health Therapeutics’ joint venture for cannabis production.
