Auxly closes previously announced C$84M credit facilities with BMO through its joint venture partner, Sunens Farms Inc.
September 24, 2019
84.00 Million CAD
On September 24, 2019, Auxly Cannabis Group Inc. ("Auxly") closed the previously announced C$84 million syndicated credit facilities with the Bank of Montreal (“BMO”), as Lead Underwriter, through Auxly's joint venture partner, Sunens Farms Inc. (“Sunens”). The syndicated senior debt facility will be for $71.5 million (the “Credit Facility”) for a three-year term along with a BMO $12.5 million leasing facility (the “Leasing Facility”). The proceeds of the Credit Facility will be used to fund phase one of the Sunens facility, that is expected to be substantially completed by December 2019. The Leasing Facility will finance processing equipment.
Auxly is an international cannabis company based in Toronto with diverse operations across Canada and Uruguay.
Sunens is a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ontario.
BMO is a Canadian multinational investment bank and financial services company headquartered in Montreal, Quebec, Canada.
McCarthy Tétrault LLP advised Auxly with a team led by Richard Higa that included Andrea Kareclas and Ranjeev Dhillon (Business), John Currie and Carly Caruso (Real Property and Planning).