ROCKY VIEW, Alberta, March 01, 2018 (GLOBE NEWSWIRE) -- Sundial Growers Inc. (“Sundial”) is pleased to announce that it has entered into a definitive agreement with Cannabis Wheaton Income Corp. (TSX-V:CBW) (“Cannabis Wheaton”) for $7 million in non-dilutive debt financing. The funding will be used towards the expansion of Phase 2 of Sundial’s flagship facility in Olds, Alberta.
“We are moving fast to increase our production capabilities to meet the expected demand after the legalization of adult-use cannabis,” explained Sundial Executive Chairman, Ted Hellard. “We are thrilled to partner with Cannabis Wheaton, which has extensive experience in and commitment to the cannabis industry. This funding allows us to continue the expansion of our Olds facility without diluting share value for investors.”
Under the terms of the agreement, Cannabis Wheaton advanced $7 million to Sundial for a period of six months and this amount can be repaid either by a cash payment or through the delivery of an agreed volume of dried cannabis produced by Sundial or through a combination of cash and cannabis. If the financing is not repaid in full on or prior to the six-month maturity date, Sundial will have the option to extend the maturity date by a further six months upon paying Cannabis Wheaton a penalty amount.
The debt financing will be used to support the second phase of Sundial’s Olds expansion, where construction recently started and is expected to be completed by October 2018. Phase 2 will produce approximately 45 million grams of dry cannabis annually. The Olds facility will be purpose-built using a unique modular construction method that will allow Sundial to maximize yields by creating environments optimized for each strain. Once complete, the facility will consist of 60 individual climate controlled grow rooms, allowing the company to minimize the risk of contamination, pests and disease while maximizing yield.
About Sundial Growers Inc.
Sundial Growers Inc. (“Sundial”) is a privately held, Alberta-based Health Canada ACMPR-approved licensed producer of medical cannabis. Sundial combines tried and true heartland farming practices with innovative horticultural techniques to grow a select range of cannabis strains. Our focus is on producing consistent cannabis that our customers can trust.
Sundial currently operates an 31,000 square foot production facility in Rocky View, Alberta, and has two separate production facilities in various stages of completion and licensing. By 2020, we expect to be one of the leading cannabis companies in the country with a projected production of over 100 million grams of dry cannabis and over 32 million grams of concentrate or cannabis extract.
For more information about Sundial Growers Inc., visit www.sundialgrowers.com.