Sundial secures $56M in financing from ATB Financial
Marijuana grower hopes to have largest purpose-built indoor cannabis facility in the world
A medical marijuana grower in Olds, Alta., has secured a $56-million financing deal with ATB Financial in order to accelerate the second and third phases of the company's expansion plans.
That was the word Wednesday from Sundial Growers Inc., which plans to use the financing to develop a 19,509-square-metre (210,000-square-foot) structure with three production pods. The final $22 million will be used to launch the company's Phase 3 expansion in Alberta.
When all three phases are completed by next year, Sundial says it will be "the largest purpose-built indoor cannabis facility in the world," according to a release.
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The ATB financing marks a "key milestone" of sorts for the cannabis industry, according to Sundial executive chairman Ted Hellard.
"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," he said, adding it will accelerate the company's expansion plans in Olds, Alta.
Sundial, a privately-owned medical marijuana producer, already operates a large production facility about 15 kilometres north of Calgary in Rocky View County.
On Tuesday, the company appointed Coca-Cola veteran Torsten Kuenzlen, who also had consumer goods experience with Molson Coors, as Sundial's CEO.
ATB Financial, also known as Alberta Treasury Branches, is a provincial Crown corporation.
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