SOL Global (CSE: SOL) portfolio company CannCure has closed a significant construction loan, totalling out at US$15.0 million, enabling the firm to fund the development of a second greenhouse for its Florida operations under the One Plant Florida brand.
The construction loan, provided by Advanced Flower Capital, will enable CannCure to begin construction on a second facility to be located in Indiantown, Florida. The facility is anticipated to be 88,327 square feet in size and located adjacent to the company’s current facility. The new building will consist of greenhouse cultivation, as well as cannabis processing and research. The facility is intended to offer a full suite of cannabis production functions within the space.
The greenhouse portion of the facility is expected to be operational within the first quarter of 2020, pending approval from the state of Florida.
The loan itself has a five year maturity, and bears interest at a rate of 13.5%. The first year of the loan will see interest only on the amount outstanding. The loan is secured via a mortgage on the property and other commercially-common security interests.
I am very excited about having Advanced Flower Capital as a capital partner as we scale up our operations as a premium flower company in Florida. The entire One Plant Florida team is committed to our mission and purpose of cultivating and delivering world-class flower and flower-derived products to Florida’s patients, and this construction loan will allow us to continue to execute on our plans to build and develop a state-of-the-art indoor facility to facilitate expansion and the acquisition of additional market share in the budding Florida marketplace.
Brady Cobb, CEO of SOL Global
Obtaining the construction loan was a critical step in the pending transaction between that of CannCure Investments and Goldstream Minerals related to the proposed reverse takeover transaction between the two firms. The two firms entered a definitve business combination arrangement yesterday, following a previously entered letter of intent.
SOL Global last traded at $0.34 on the CSE.
Information for this briefing was found via Sedar and SOL Global Investments Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
