VANCOUVER, Oct. 10, 2019 /CNW/ - PRESS RELEASE - Cannara Biotech Inc., an emerging vertically integrated cannabis company focused on indoor cultivation and the sale of cannabis and cannabis-infused products, announced it has secured a first mortgage against its Farnham Facility in the value of $6 million with the Canadian Imperial Bank of Commerce. These funds will reduce the existing vendor take-back mortgage, thereby significantly reducing debt service costs.
The 625,000-square-foot Farnham facility is situated forty-five minutes from Montreal on 27 acres, with 32-foot high ceilings. Recently, construction was completed on Phase One consisting of 170,000 square feet, of which 110,000 is dedicated to indoor cultivation with a capacity of 20,000 kg of premium dried cannabis once the cultivation license is granted. The remaining finished space is designed to accommodate various processing stages such as manufacturing, extraction and packaging. The building is currently valued at more than $40 million.
"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," said Zohar Krivorot, president and CEO of Cannara. "Once Cannara's cultivation and sales licenses are granted we'll look to augment this mortgage to further reduce our debt service costs."