SugarBud Craft Growers entered into a commitment letter with Farm Credit Canada for a $17.65 million credit facility to fund an aeroponic cannabis cultivation facility in Alberta.

SugarBud is in advanced negotiations with another Canadian financial institution for a $2 million revolving working capital credit facility to be syndicated.

The facility will be transformational to SugarBud and its ability to execute on its business plan.

The facility and the revolver will provide SugarBud with $19.65 million of credit facilities in addition to its current working capital of approximately $3.5 million and the proceeds from its previously announced rights offering which, if fully subscribed, will result in proceeds of $7.4 million. SugarBud is also pursuing equipment financing and other sources of non-dilutive capital with respect to certain components of the project.

“Our ability to attract world class capital partners such as Farm Credit Canada speaks to our unique hybrid oil and gas and cannabis business model and the strength of our team,” said Craig Kolochuk, SugarBud’s president and CEO.

SugarBud is a Calgary-based emerging cannabis and oil and natural gas company engaged in the development, acquisition and production of cannabis and natural gas and crude oil reserves in Alberta.