ATB Financial has agreed to provide $5.7 million in financing to Canadian cannabis company Westleaf Inc. The capital infusion will be used for growth. Westleaf is focused on cannabis brands, extraction and production of derivatives and cannabis cultivation.
CALGARY, Oct. 2, 2019 /PRNewswire/ – Westleaf Inc. (the “Company” or “Westleaf”) (TSX-V:WL) (OTCQB:WSLFF), is pleased to announce that it has signed amendment agreements to two of its existing credit facility commitment letters with ATB Financial (“ATB”) resulting in an additional $5.7 million of capital available for use by the Company. Westleaf has increased its term loan on The Plant, its fully completed extraction, manufacturing and product formulation facility, by $2.7 million and has secured a $1.0 million revolving credit facility to assist with working capital provided that any draw downs in relation thereto can only be made after final receipt of a standard processing license for The Plant from Health Canada. In addition, the credit facility related to the construction of Westleaf’s cultivation facility in Battleford, Saskatchewan has been amended to reduce its restricted cash requirement by $2.0 million.
“ATB continues to be a leader in the lending space for cannabis companies and remains a strong supporter of Westleaf and its strategic plan” said Taylor Ethans, Chief Financial Officer and Head of M&A. “From the beginning of Westleaf, we have been focused on maintaining an efficient capital structure with low cost, traditional senior debt to help accelerate our growth strategy while limiting dilution for existing shareholders. With the increase in non-dilutive capital, Westleaf intends to accelerate its footprint of additional Prairie Record retail cannabis stores and to provide for additional start-up capital for The Plant.”
About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.