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Sugarbud Announces Non-Dilutive Secured $5.0 Million Credit Facility with Connect First Credit Union Ltd.
Sugarbud Announces Non-Dilutive Secured $5.0 Million Credit Facility with Connect First Cr...
About this update from Sucro Limited
[{"type":"text","content":"\n\n\n\nSugarbud Announces Non-Dilutive Secured $5.0 Million Credit Facility with Connect First Credit Union Ltd.\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, May 22, 2020\n\n\n\nCALGARY, May 22, 2020 /CNW/ - Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) (\"Sugarbud\" or the \"Company\") is pleased to announce that it has entered into a commitment letter with Connect First Credit Union Ltd. (\"First Calgary\") in respect of a $5.0 million senior secured credit facility (the \"Credit Facility\").\n\n \n \n \n \n \n \n\n \nThe committed interest rate under the Credit Facility is the Canada Bond rate for five years + 3.55% with a minimum floor rate of 4.25% and matures five years following closing.  The Credit Facility replaces the Company's existing debt facility with Pillar Capital Corp.  The proceeds from the Credit Facility will be used to repay the $2.04 million outstanding under the existing debt facility and for ongoing working capital purposes.  The Company has the right to repay amounts outstanding under the Credit Facility prior to the maturity date without penalty.  The Credit Facility is subject to continued compliance with customary financial covenants.  Subject to the satisfaction of certain customary conditions, including the finalization of security documentation, the full amount of the Credit Facility will be available at closing; which the Company expects to occur on or about June 1st, 2020.\nUpon the anticipated closing of the Credit Facility and the previously announced marketed public offering (the \"Offering\") of secured convertible debenture units (the \"Debenture Units\") of up to $4.0 million, subordinating in priority and ranking to the Credit Facility, the Company will be strategically positioned to have adequate funding for the completion of Phase 1a and to also begin the build-out for Phase 1b at the Company's purpose built 29,800 sq. ft. facility in Stavely, Alberta for the cultivation and production of high quality, ultra-premium craft cann...