Leading Canadian marijuana firm Aurora Cannabis has secured a new debt agreement with the Bank of Montreal (BMO), worth up to $250mn, considered to be the biggest traditional debt facility within the cannabis industry to date.
The agreement will consist of a $150mn loan and $50mn revolving credit facility that will both mature in 2021.
Further, Aurora will retain the right to request of an increase of up to $45mn more to the loan, subject to agreement from BMO, that will also provide up to $5mn in other credit as well.
“This is by far the largest traditional debt facility in the cannabis industry to date,” said Terry Booth, CEO of Aurora Cannabis.
“The funds provide us additional fuel to complement our end-to-end portfolio of vertically integrated, geographically and horizontally diversified assets, aimed at building a pre-eminent global cannabis company with a superior margin profile.”
The debt facility will be secured by Aurora’s production facilities that include Aurora Sky, Aurora Mountain and Aurora Vie.