Business
CanadaBis Capital Inc. Acquires $3.5 Million In Bank Financing and Extends the Terms of Existing Warrants
RED DEER, AB / ACCESSWIRE / October 22, 2019 / CanadaBis Capital Inc. ("CanadaBis" or "the C...
About this update from Canadabis Capital, Inc.
[{"type":"text","content":"CanadaBis Capital Inc. Acquires $3.5 Million In Bank Financing and Extends the Terms of Existing WarrantsRED DEER, AB / ACCESSWIRE / October 22, 2019 / CanadaBis Capital Inc. (\"CanadaBis\" or \"the Company\"), through its subsidiary 1998643 Alberta Ltd. (\"Stigma Grow\"), is pleased to announce that it has successfully executed its option to purchase its leased cultivation facility, located in Red Deer County, Alberta.The operating facility currently holds a Health Canada-issued cultivation, processing and sales license, which the Company has applied to amend to include dried flower. This amendment will provide the Company with the ability to sell ultra-premium cannabis products to licensed provincial retailers for sale to consumers. Having just completed its third harvest, Stigma Grow continues to build inventory of high-THC dried flower in anticipation of the approval of this amendment, as well as for use in a variety of new products to become available upon the anticipated legalization of extracts and topicals.Servus Credit Union has extended a $3.5 million fixed mortgage to assist in facilitating the purchase of the facility, with $0.7 million in cash making up the remainder of the $4.2 million purchase price. The mortgage has a 14-year term at an interest rate of prime + 1% and is interest-only until March 1, 2020.Stigma's cultivation facility is the cornerstone of CanadaBis' vertically integrated structure. Having it wholly owned by Stigma allows the Company to have greater control over operating cost structure, and provides full ownership of a high-value, scalable asset.In addition, the Company intends to extend and reprice all existing and outstanding share purchase warrants. Each warrant entitles the holder to acquire one common share in CanadaBis for every one share purchase warrant. The warrants have a term of one year and an exercise price of $1.00 per warrant. The Company intends to reprice these warrants to $0.50 and extend the life of the warrants by an additional two years. The warrant extension and repricing will be communicated to each warrant holder and is also subject to TSXV Exchange approval.Finally, the Company has received TSXV Exchange approval for the previously announced acquisition of 2103157 Alberta Ltd., operating as INDICAtive Collection. INDICAtive Collection is now open and serving customers in ...