Cannabis Wheaton Income (TSXV:CBW) announced a definitive agreement with Sundial Growers.
As quoted in the press release:
Cannabis Wheaton Income is pleased to announce that it has entered into a definitive agreement whereby the Company has provided Sundial Growers Inc. (“Sundial“), an Alberta-based Licensed Producer, with $7,000,000 in non-dilutive debt financing by way of an instrument evidencing a debt obligation repayable by either the payment of a buy back amount or the delivery of cannabis product (the “Note“). The proceeds of the Note will be used by Sundial to add to its current funding for the construction of a new 545,000 square foot state of the art cultivation facility to be located in the Town of Olds, Alberta.
Under the terms of the Note, the Company advanced $7,000,000 to Sundial for a period of 6 months (the “Maturity Date“). Sundial will repay the Note either by a cash payment, through the delivery of an agreed upon volume of dried cannabis produced by Sundial (“Grams“) or through a combination of cash and Grams. If the Note is not repaid in full on or prior to the Maturity Date, Sundial will have the option to extend the Maturity Date by a further six months upon paying the Company a penalty amount.