Sugarbud Closes Restructuring of Non-Dilutive Secured Credit Facility with Connect First Credit Union Ltd.
January 13 2021 - 9:20PM
Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS,
SUGR.DB) ("
Sugarbud") is pleased to announce that
it has closed the restructuring of its non-dilutive secured credit
facility (the
“Credit Facility”) with Connect
First Credit Union Ltd. (“
First Calgary”) 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 5-year fixed rate is 4.15% - a reduction from the
previous variable rate floor of 4.25%. The Credit Facility will
continue to be primarily secured against Sugarbud's cultivation and
production facility in Stavely, Alberta. The additional
proceeds will be used 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.
“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
Sugarbud is an Alberta-based, consumer-driven
craft cannabis company focused on the cultivation and production of
superior, select-batch, craft cannabis products. Our 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. http://www.sugarbud.ca/
John Kondrosky Chief Executive
Officer Sugarbud Craft Growers Corp. Phone: (604) 499-7847
E-mail: johnk@sugarbud.caInvestor
Relations ContactChris
MoulsonChief Financial OfficerSugarbud
Craft Growers Corp.Tel: (778) 388-8700E-mail:
chrism@sugarbud.caWebsites:
http://www.sugarbud.ca/http://craftcannabiscollection.caAddress:
Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4 |
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Forward Looking and Cautionary
Statements
This news release contains forward-looking
statements. More particularly, and without limitation, this news
release contains statements concerning: Sugarbud's assessment of
future plans and operations; and the Credit Facility and use of
proceeds therefrom. When used in this document, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking statements. The
forward-looking statements are founded on the basis of expectations
and assumptions made by Sugarbud. Forward-looking statements are
subject to a wide range of risks and uncertainties, and although
Sugarbud believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially
from those in the forward-looking statements. Please refer to
Sugarbud's most recent annual information form and management's
discussion and analysis for risk factors relating to Sugarbud,
which can be accessed under Sugarbud's profile on www.sedar.com.
Except as required by applicable laws, Sugarbud does not undertake
any obligation to publicly update or revise any forward-looking
statements.
This news release contains future-oriented
financial information and financial outlook information
(collectively, “FOFI”) about Sugarbud’s operations, Credit Facility
and capital funding strategy, all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
forth in the above paragraph. FOFI contained in this document was
approved by management as of the date of this document and was
provided for the purpose of providing further information about
Sugarbud’s future business operations. Sugarbud disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.
Neither the TSXV nor its regulation
services provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
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