Westleaf Cannabis Inc. secures up to $24 million of debt financing from ATB Financial
CALGARY, Sept. 17, 2018 /CNW/ - Westleaf Cannabis Inc. ("Westleaf" or the "Company") is pleased to announce that it has signed a commitment letter for a development loan of up to $24 million (the "Financing") with ATB Financial ("ATB"). The loan is being allocated in two installments, with the first $12.75 million of funding accounting for phase one of the company's 115,000 square foot cannabis cultivation facility located near Battleford (the "Battleford Facility"). The first installment of the development loan is accompanied by the second installment, which includes an additional $11.25 million related to Phase II expansion of the Battleford Facility, conditional on receipt of a production license. The Battleford Facility build-out is underway with construction having commenced earlier this year.
"As one of the first traditional lenders to enter the cannabis space, we're proud of our long-term partnership with ATB as it has been instrumental in bringing our Westleaf vision to life" said Taylor Ethans, Chief Financial Officer of Westleaf Cannabis Inc. "We believe this creates a well-defined competitive advantage and is a strong validation of our team's operational and financial expertise. Our focus is to maintain an efficient capital structure with low cost, traditional senior debt to help accelerate our growth strategy while limiting dilution for existing and future shareholders."
The Battleford Facility is one of two production / processing facilities which are planned for Westleaf, and once fully operational, Westleaf's facilities will provide significant job creation for the communities in which it operates. Westleaf recently hosted a job fair in Battleford which was aimed at informing the community about upcoming employment opportunities at the facility.
Westleaf's vertically integrated business model allows for complete ownership across its supply chain resulting in highly efficient and controlled operations. Upon completion, the production facilities will provide branded products that can be sold in Westleaf's owned retail stores, Prairie Records. The company plans on opening multiple retail locations across Canada over the next 12 months.
About Westleaf Cannabis Inc.
Westleaf Cannabis Inc. ("WCI") is a private cannabis company headquartered in Calgary, Alberta that is purely and proudly Canadian. With two state-of-the-art production facilities under development in Saskatchewan and Alberta, WCI will deliver superior Canadian-made products curated in world class production facilities and laboratories. Once both of Westleaf's planned facilities are fully operational, Westleaf will have up to ~175,000 of square feet devoted to production and manufacturing facilities. WCI intends to develop and manufacture a diverse range of high quality, safe and consistent cannabis products. With a focus on premium retail locations, cannabis cultivation, processing, and extraction practises, WCI will deliver a distinct product offering and in-store customer experience anchored on higher standards. With prospective retail stores planned for British Columbia, Alberta, Saskatchewan and Manitoba (subject to receipt of retail licenses in respect of the same) and intent to apply to Ontario, WCI has plans to be deeply rooted in the fabric of the communities in which it operates, solidifying its position as a leader in the Canadian cannabis landscape. For more information, please visit http://www.westleaf.com/.
SOURCE Westleaf Cannabis Inc.
Media Contact: Lauren Steeves, for Westleaf Cannabis Inc., [email protected], T: 306-717-3253
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