Business
Sugarbud Announces Non-Dilutive Credit Facility and the Cancellation of Previously Announced Alumina Partners LLC Equity Facility
Sugarbud Announces Non-Dilutive Credit Facility and the Cancellation of Previously Announc...
About this update from Sucro Limited
[{"type":"text","content":"\n\n\n\nSugarbud Announces Non-Dilutive Credit Facility and the Cancellation of Previously Announced Alumina Partners LLC Equity Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, June 5, 2019\n\n\n\nTSX-Venture Exchange: SUGR, SUGR.WT\n CALGARY, June 5, 2019 /CNW/ - SugarBud Craft Growers Corp. (\"SugarBud\" or the \"Company\") announces that its subsidiary, 1800905 Alberta Ltd., as borrower, has entered into a secured non-dilutive credit facility with Pillar Capital Corp. (\"Pillar\") for up to CDN $5,000,000 (the \"Credit Facility\"). \n\n \n \n\n \nThe proceeds of the Credit Facility will be used by SugarBud to support working capital requirements and to continue to equip Phase 1 of its 29,800 square foot Stavely, Alberta indoor cannabis cultivation facility (\"Phase 1 Stavely Facility\"). The Phase 1 Stavely Facility is expected to be capable of approximately 13,926,000 to 16,384,000 grams of annual dried cannabis production per year once fully equipped and operational.\nCraig Kolochuk, SugarBud's President and Chief Executive Officer stated: \"This non-dilutive credit facility allows us to continue the diligent execution of our business plan prior to the receipt of our cultivation license from Health Canada, which we view as a major milestone and catalyst. We expect to obtain our cultivation license imminently, as we received confirmation of readiness from Health Canada on April 18, 2019 and we submitted our affirmation of readiness package prior thereto.\"\nIt is SugarBud's intention to replace this Credit Facility with a larger credit facility from another senior financial institution (the \"Senior Facility\") upon receipt of SugarBud's cultivation license from Health Canada. SugarBud is currently in negotiations with a leading credit union based in Alberta (the \"Credit Union\") regarding the Senior Facility. It is expected that the Senior Facility will either be held by the Credit Union alone, or in a syndicate led by the Credit Union.    \nThe Credit Facility is guaranteed by SugarBud and its wholly owned s...