Eve & Co, through its wholly-owned subsidiary Natural MedCo, has entered into an $18,700,000 construction facility with Royal Bank of Canada to fund the completion of the 780,000 sq. ft. expansion of its greenhouse production facility located in Middlesex County, Ontario. After completion of the expansion which is expected by the end of Q2 2019, it is contemplated that the construction facility will be replaced with a non-revolving term facility. Interest on the facilities will float at a rate of 1.00% per annum above the lender’s prime lending rate, which currently is 3.95% per annum.
The obligations under the facilities will be guaranteed by Eve & Co and will be primarily secured by a collateral mortgage on NMC’s property located in Middlesex County. The facilities are subject to certain customary financial and other covenants for a financing of this type and advances under the facilities are subject to certain customary conditions precedent.
“This transaction is a strong validation of Eve's efforts to build a leading cannabis company. This non-dilutive financing will help complete the ongoing expansion of our facility from 220,000 sq. ft. to 1,000,000 sq. ft., making Eve one of the largest producers in Canada. We are thrilled to have the Royal Bank of Canada, one of the world's pre-eminent financial institutions, supporting our work that will assist us to grow the Eve brand and expand our global footprint,” stated Melinda Rombouts, CEO of Eve & Co.