CALGARY, May 28, 2020 /CNW/ - Sugarbud Craft Growers Corp.
(TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to announce
that it has closed the previously announced $5.0 million senior secured credit facility with
Connect First Credit Union Ltd ("First Calgary").
"Our new credit facility with First Calgary provides a
significant injection of working capital to the Company –
materially addressing our working capital needs through the balance
of 2020, after which, we anticipate being operating cash flow
positive" stated Sugarbud Chief Executive Officer,
John Kondrosky. "We also view this
credit facility as a strong vote of confidence from a tier one
lender in our organization and our ability to continue to
successfully execute against our operating plan and primary
corporate objectives", added Mr. Kondrosky.
The committed rate under the credit facility is the Canada Bond
rate for 5 years + 3.55% with a minimum floor rate of 4.25%. The
full amount of the new debt facility is now available and will be
partially used to repay the $2.04
million outstanding under the previous debt facility and for
ongoing working capital purposes. Additional details in
respect of the new credit facility are included in the Company's
press release dated May 22, 2020.
Read: Sugarbud Announces Non-Dilutive Secured $5.0 Million Credit Facility with Connect First
Credit Union Ltd.
About Sugarbud
Sugarbud is a federally licensed, Alberta-based, craft cannabis company; focused
on the cultivation and production of superior, select-batch, craft
cannabis products. Our mission is to become a trusted and
well-respected brand - renowned for providing
exceptionally high-quality craft cannabis products - thereby
delighting the most discerning of cannabis consumers.
http://www.sugarbud.ca/
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,
operations and cannabis cultivation; the Company's ability to
remain operating in accordance with developing public health
efforts to contain COVID-19; and the credit facility with First
Calgary 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 including, but not
limited to: currently contemplated expansion and development plans
may cease or otherwise change; production of cannabis may be lower
than expected, Sugarbud may not obtain the required approvals from
Health Canada, including approving an amendment to its dried
cannabis sales licence to permit interprovincial sales; demand for
Sugarbud's products may be lower than anticipated; results of
production and sale activities; results of scientific research;
changes in prices and costs of inputs; demand for labour; demand
for products; failure of counter-parties to perform contractual
obligations; failure to maintain consumer brand recognition and
loyalty of customers; reliance on relationships with wholesalers
and retailers for distribution of products and failure to maintain
strategic business relationships; intense competition, including
from illicit sources; uncertainty and continued evolution of
markets; product liability litigation; reliance on information
technology; infringement on intellectual property; failure to
benefit from partnerships; sensitivity of end-customers to
increased sales taxes and economic conditions; failure to comply
with certain regulations; departure of key management personnel or
inability to attract and retain talent; actions and initiatives of
federal and provincial governments and changes to government
actions, initiatives and policies and the execution and impact
thereof; the ability to implement corporate strategies; the state
of domestic capital markets; the ability to obtain additional
financing, including pursuant to equipment lease arrangements;
changes in general market conditions; industry conditions and
events; the size of the medical marijuana market and the
recreational marijuana market; government regulations, including
future legislative and regulatory developments involving medical
and recreational marijuana; construction delays; risks inherent in
the agricultural business, such as insects, plant diseases and
similar agricultural risks which can have a significant impact on
the size and quality of the harvest of cannabis crops; competition
from other industry participants; and other factors more fully
described from time to time in the reports and filings made by
Sugarbud with securities regulatory authorities. In addition, the
Company cautions that current global uncertainty with respect to
the spread of the COVID-19 virus and its effect on the broader
global economy may have a significant negative effect on the
Company. While the precise impact of the COVID-19 virus on the
Company remain unknown, rapid spread of the COVID-19 virus may have
a material adverse effect on global economic activity, and can
result in volatility and disruption to global supply chains,
operations, mobility of people and the financial markets, which
could affect interest rates, credit ratings, credit risk,
inflation, business, financial conditions, results of operations
and other factors relevant to the Company. Please refer to
Sugarbud's most recent annual information form and management's
discussion and analysis for additional risk factors relating to
Sugarbud, which can be accessed under Sugarbud's profile
on www.sedar.com.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
Sugarbud's operations, future cannabis production and revenue
projections, credit facility and use of proceeds therefrom, cash
flow, including the expectation of being cash flow positive after
2020, working capital requirements and components thereof, 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.
Except as required by applicable laws, Sugarbud does not
undertake any obligation to publicly update or revise any
forward-looking statements.
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.
SOURCE SugarBud Craft Growers Corp.