Sunens Farms, a subsidiary of Auxly Cannabis, entered into a term sheet for a syndicated credit facility, with the Bank of Montreal as lead underwriter.

The syndicated senior debt facility will be for $71.5 million for a three-year term together with a BMO $12.5 million leasing facility.

Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, ON. 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.

“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,” said Peter Quiring, CEO of Sunens.

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.

Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets.