Auxly Announces Signing Of Term Sheet For $84 Million Credit Facilities Through Its Joint Venture Partner, Sunens Farms Inc.
Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to announce that its joint venture partner, Sunens Farms Inc. ("Sunens"), has entered into a term sheet for a syndicated credit facility, with the Bank of Montreal ("BMO") as Lead Underwriter and, subject to the satisfaction of certain customary closing conditions and the finalization of definitive loan documentation, expects to receive debt financing in the aggregate amount of approximately $84 million. The syndicated senior debt facility will be for $71.5 million (the "Credit Facility") for a three-year term together with a BMO $12.5 million leasing facility (the "Leasing Facility").
Savvy Investors Seek out Innovative Cannabis Opportunities
The booming cannabis industry has created opportunities for many driven entrepreneurs. In particular, many may be looking to launch something standard such as operating a retail dispensary or starting up a cultivation facility. However, these are the most common businesses within the cannabis industry and face heavy competition among one another. Moreover, dispensaries and cultivation sites both require licenses granted from the federal or provincial governments and some regions can experience a large influx of applications while typically, only a handful are granted to companies. While certain businesses can dominate a region or report attractive financials, investors are more interested in innovative companies and in 2018, they poured approximately USD 1.3 Billion into startups and other private ventures, according to Crunchbase. Overall, investors are keen on the cannabis startup market space as a multitude of companies have developed innovative ways to consume or grow cannabis. Furthermore, the statistics do not include all investments made. For instance, tobacco giant, Altria, and beverage producer, Constellation Brands, poured billions of dollars collectively into the industry. To note, the two large corporations invested in the industry because they are witnessing their primary market segment growth decline.in addition to the largest names in the cannabis market, there are plenty of small companies that are creating extraordinary products or technologies to help accelerate the growth of the industry. Overall, the cannabis industry is still in its infancy stage, meaning there is still a plethora of opportunities to seize. According to data compiled by Grand View Research, the global legal marijuana market is expected to reach USD 146.4 Billion by 2025 while registering a CAGR of 34.6%. Codebase Ventures Inc. (OTC: BKLLF) (CSE: CODE), India Globalization Capital, Inc. (NYSE-A: IGC), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY), United Cannabis Corporation (OTC: CNAB), Invictus MD Strategies Corp. (OTC: IVITF) (TSX-V: GENE)
Auxly Welcomes $123 Million Investment and R&D Partnership with Imperial Brands
-- Imperial Brands to invest approximately $123 million by way of a debenture convertible into 19.9% ownership of Auxly at a conversion price of $0.81 per share