Greenway Secures Financing With Bank of Montreal
KINGSVILLE & LEAMINGTON, Ontario — Greenway Greenhouse Cannabis Corporation (“Greenway”) is pleased to announce that it has received final credit approval for a $6 million term loan with Bank of Montreal (the “Facility”). In conjunction with an additional $4 million contributed by Greenway’s founders, Carl Mastronardi and Jamie D’Alimonte, Phase 1 of Greenway’s expansion plan is fully funded. Included in the Facility is an uncommitted option to increase the Facility by an incremental $25 million to a total of $31 million, subject to agreement by BMO and satisfaction of certain legal and business conditions.
“Securing this financing by a tier 1 bank before Greenway receives their standard cultivation license is a tremendous vote of confidence in our management team, ability to operate large-scale grow operations, and expectation to deliver strong financial results,” said Jamie D’Alimonte, Chief Executive Officer. “Phase 1 is fully funded and we look forward to expanding aggressively.”
“This credit facility was only possible because of Carl and Jamie’s outstanding track record for operational efficiencies, financial performance, and successful execution of new ventures.”, remarked Darren Peddle, Chief Financial Officer. “The access to non-dilutive financing at the start-up phase is extremely rare and aligns with our efforts for minimal dilution to shareholders.”
The pricing of the Facility is a set margin over to BMO’s CAD Prime Rate or a Bankers’ Acceptance rate based on the applicable term, which may increase or decrease. The interest payable is expected to be in the low to high 5% per annum range.
Phase 1 includes retrofitting 43,000 square feet of cultivation area as well as 10,000 square feet for processing. Greenway estimates to produce 4,000 kgs of dried bud per annum, but will have the processing capacity for 30,000 kgs for additional expected production from Phase 2. Successive expansions will bring Greenway’s total footprint to 2,276,000 square feet for cannabis cultivation and 73,000 square feet for cannabis processing, with an annual design capacity of 210,000 kg.