Aurora Cannabis signs loan deal for up to $250 million with Bank of Montreal
Aurora Cannabis Inc. (TSX:ACB) logo is seen in this undated handout photo. (THE CANADIAN PRESS / Aurora Canabis Inc.)
The Canadian Press
Published Tuesday, June 26, 2018 8:10AM EDT
EDMONTON - Aurora Cannabis Inc. has signed a loan deal with the Bank of Montreal for up to $250 million.
Aurora chief executive Terry Booth called it the largest traditional debt facility in the cannabis industry to date.
Under the agreement, Aurora will receive a $150-million term loan and a $50-million revolving credit facility, both of which will mature in 2021.
A short period after Ottawa's legislation to legalize and regulate recreational marijuana comes into effect in October, the company may request an increase of up to $45 million for the term loan.
BMO will also provide up to $5 million in other credit instruments.
The debt facility will be primarily secured by Aurora's production facilities.