Mr. John Kondrosky reports
SUGARBUD CLOSES RESTRUCTURING OF NON-DILUTIVE SECURED CREDIT FACILITY WITH CONNECT FIRST CREDIT UNION LTD.
Sugarbud Craft Growers Corp. has closed the restructuring of its non-dilutive secured credit facility with Connect First Credit Union Ltd. to increase the credit facility to $5.22-million and extend maturity until five years from the closing date.
"The increase and extension of our credit facility with First Calgary is a vote of confidence in management's ability to continue to deliver against our operating plan and our focus on a balanced approach to capitalization," stated Sugarbud chief financial officer Chris Moulson.
Under the terms of the credit facility, the committed five-year fixed rate is 4.15 per cent -- a reduction from the previous variable rate floor of 4.25 per cent. The credit facility will continue to be primarily secured against Sugarbud's cultivation and production facility in Stavely, Alta. The additional proceeds will be used for continuing 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.
"Locking in a more attractive fixed rate, as well as accessing additional non-dilutive net working capital, improves both our balance sheet and remains consistent with Sugarbud's stated strategy and approach to balanced capital funding," concluded Mr. Moulson.
About Sugarbud Craft Growers Corp.
Sugarbud is an Alberta-based, consumer-driven, craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Its vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
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