Sundial Growers Inc. (“Sundial”) has secured a $56 million debt financing arrangement through ATB Financial to accelerate the development of the second phase of its flagship cannabis production facility in Olds, Alberta.
“This $56 million is one of the first non-dilutive investments to take place in the cannabis industry from a leading financial institution like ATB,” said Sundial’s Executive Chairman, Ted Hellard. “Sundial’s relationship with ATB and the capital they are providing is a key milestone in our long-term strategy, which is to accelerate the development of our facility in Olds and to become a leading cannabis company in Canada. The entire process of working with the ATB team was truly a first class experience and we look forward to a long and innovative relationship with them.”
The debt financing will be used to support two distinct projects for Phases 2 and 3 of the Olds facility. The initial $34 million of senior financing will be used to fund the development of a 210,000 square foot modular structure composed of three 70,0000 square foot production pods as well as a 30,000 square foot expansion of Olds Phase 1. The additional $22 million will be used to fund the development of another 210,000 square foot modular facility as part of the Phase 3 development of the Olds expansion.
“Canada’s cannabis sector is a rapidly emerging industry with the potential for substantial and continued growth. ATB is excited to be working with Sundial,” said ATB Financial Director, Diversified Services, Max Herrera. “Their experienced management team, sustainable business model and continued investment in Alberta strongly aligns with ATB’s investment principles.”
Phase 2 of the Olds facility will utlilize an innovative modular construction design that will allow Sundial to maximize yield by creating segmented and environmentally controlled individual grow rooms.
“This modular approach will give Sundial a number of sustainable advantages, including highly controlled environments that will create the optimal conditions for each individual strain in our diverse inventory of cultivars,” Hellard added. “Innovative manufacturing and construction techniques will also enable Sundial to build our facility faster and will allow us to be agile and flexible in our future expansion plans. Upon completion of Phase 3 by 2019, Sundial will have the largest purpose built indoor cannabis facility in the world right here in Olds, Alberta”