One Canadian pot company has attained financing for its newest property, a deal which may signal a sea change in lender thinking about how they treat mortgage funding for legal grow-ups.
Tweed Marijuana Inc. announced it has attained financing for its greenhouse facility in Niagara-on-the-Lake, Ontario from a “leading Canadian financial institution.” According to an official release from the company, the deal – which was finalized on November 7 – was a $1,875,000 mortgage, amortized over seven years at a five-year fixed rate of 5.3 per cent.
“This mortgage agreement solidifies Tweed as a member of the business community in Niagara-on-the-Lake and strengthens the Company's ongoing strategy of geographic diversity and the high scale, low-cost production of premium medical marijuana,” the release states.
Tweed is Canada’s first publicly licensed producer of medical marijuana and harvests its product in Niagara-on-the-Lake before transporting to Smiths Falls for processing.
"Studies and clinical information are available, we're working with doctors to connect the dots," said Bruce Linton, Co-Founder and Chairman of Tweed in an official release. "Six months ago, accessing medical marijuana changed dramatically for Canadians allowing Tweed to lead the sector as it grows. At the end of the day, Tweed wants to facilitate the conversations that keep that momentum going.”
And while this particular operation is legal, it prompts the issue of illegal grow-ops are increasingly challenge for landlords – who are responsible for any damages incurred within the property.
Pauline Aunger, a Realtor in Ottawa and a member of the Canadian Real Estate Association, says investors could face property damage and legal risks from their tenants' growing activities.
She recommends that property managers and owners make planned visits to their leased properties on a frequent basis to ensure tenants aren't violating marijuana laws.
Grow-op registry proposed
Grow-op costs former owner dearly