CALGARY, Alberta, Jan. 13, 2021 (GLOBE NEWSWIRE) -- 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 |
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.