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Overview of Sunens Farm Source: Auxly
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  • Auxly Cannabis Group Inc. (XLY) announced that it has acquired 100 per cent ownership of Sunens Farms Inc.
  • According to a share purchase agreement between Auxly and Peter Quiring, Auxly acquired all the issued and outstanding securities of Sunens not already owned by the company
  • Sunens and Auxly have amended and restated Sunens’ secured credit facility that was entered into in September 2019 underwritten by a syndicate of lenders led by the Bank of Montreal bringing the total principal indebtedness to $62.5 million
  • Auxly will immediately begin integrating Sunens’ proven cultivation capabilities, giving Auxly the competitive advantages of scale, lower costs and surety of supply as it continues to build to leadership in 1.0 cannabis product formats following on the success of its Back Forty branded flower and pre-rolls product launches
  • Auxly Cannabis Group Inc. (XLY) is down 2.13 per cent and is trading at $0.23 per share as of 4:31 p.m. ET

Auxly Cannabis Group Inc. (XLY) has acquired 100 per cent ownership of Sunens Farms Inc.

According to a share purchase agreement between Auxly and Peter Quiring, Auxly acquired all the issued and outstanding securities of Sunens not already owned by the company.

Auxly acquired the issued and outstanding securities of Sunens not already owned by Auxly from Peter Quiring for consideration of $1.6 million, comprised of $500,000 in cash and $1.1 million in Auxly common shares, a $3.4 million unsecured promissory note payable over 30 months in equal monthly installments with the first payment due one year after the date of closing, and the transfer of certain non-core assets of Sunens.

Sunens and Auxly have amended and restated Sunens’ secured credit facility that was entered into in September 2019 underwritten by a syndicate of lenders led by the Bank of Montreal bringing the total principal indebtedness to $62.5 million.

Sunens has entered an Amended and Restated Credit Facility with the following terms:

  • An immediate cash payment by Auxly of $15 million applied to the outstanding principal balance of the revolving credit facility, bringing the outstanding principal amount thereunder to $62.5 million.
  • Extension of the maturity date by a year to September 30, 2023, with an option for Sunens to extend for an additional year by making a further principal repayment of $5 million by December 31, 2022.
  • The obligations of Sunens under the Amended and Restated Credit Facility continue to be supported by an unsecured $33 million limited recourse guarantee by Auxly, and a pledge by the company of all its securities of Sunens with new revenue and EBITDA covenants.

Auxly will immediately begin integrating Sunens’ proven cultivation capabilities, providing Auxly with competitive advantages of scale, lower costs and surety of supply as it continues to build to leadership in 1.0 cannabis product formats following the success of its Back Forty branded flower and pre-rolls product launches.

Auxly Cannabis Group Inc. (XLY) is down 2.13 per cent and is trading at $0.23 per share as of 4:31 p.m. ET.

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