Auxly unit signs term sheet for $84 million facility with BMO

By Sarah Lizee

Olympia, Wash., Aug. 14 – Auxly Cannabis Group Inc.’s joint venture partner Sunens Farms Inc. entered into a term sheet for an about $84 million 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, according to a press release.

The proceeds of the credit facility will be used to fund phase one of the Sunens facility, a fully automated, purpose-built greenhouse for cannabis cultivation currently under construction in Leamington, Ont.

Construction is expected to be substantially completed by December.

The leasing facility will finance processing equipment.

The loans are secured by the Sunens facility, partially guaranteed by Auxly and contain customary financial and restrictive covenants.

The company expects the transaction to close in the third quarter of this year.

Auxly is a cannabis company based in Vancouver, B.C.

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