Cannabis company Cannara Biotech has announced its acquisition of a $6-million commercial mortgage financing facility with CIBC.
The company is aiming to build the largest indoor cannabis cultivation facility in Quebec, and one of the largest nationwide, at 625,000 square feet.
Said facility saw the completion of its first phase recently, with 170,000 sq. ft. ready for use. Of this, 110,000 sq. ft. will be used for indoor cultivation, with a projected capacity of 20,000 kg of premium dried cannabis upon granting of the cultivation license. The remaining 60,000 sq. ft. will be dedicated to production and packaging.
“Having constructed a state-of-the-art production and processing facility in an outstanding location, and recently advanced our commercial readiness by filing our Health Canada evidence package, this leading Canadian institution was more than comfortable to be our financial partner,” Cannara president and CEO Zohar Krivorot said.
“Once Cannara’s cultivation and sales licenses are granted we'll look to augment this mortgage to further reduce our debt service costs.”
Earlier this year, Altus Group reported that the legalized cannabis trade has injected new strength and dynamism into once-struggling tertiary markets. Much of this can be attributed to the fact that many marijuana production facilities are situated on the extremities of the highly expensive urban areas.