Eve & Co Enters Into Credit Facility With Royal Bank of Canada to Fund Expansion of Its Greenhouse Production Facility
TORONTO, March 19, 2019 (GLOBE NEWSWIRE) -- Eve & Co Incorporated (“Eve & Co” or the “Company”) (TSX-V: EVE; OTCQB: EEVVF) is pleased to announce that Eve & Co, through its wholly-owned subsidiary Natural MedCo Ltd. (“NMC”), has entered into an $18,700,000 construction facility with Royal Bank of Canada (the “Lender”) 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.
The Company also announced today that the Board of Directors has appointed Davidson & Company LLP as the Company’s new auditor, replacing MNP LLP. The Company has filed a Notice of Change of Auditor in respect of this change under its profile on SEDAR at www.sedar.com.
Eve & Co, through its wholly-owned subsidiary Natural MedCo Ltd., holds cultivation and processing licenses under the Cannabis Act (Canada) for the production and sale of various cannabis products, including dried cannabis, cannabis plants and cannabis oil. Natural MedCo Ltd. was Canada’s first female founded licensed producer of medicinal marijuana and received its cultivation license from Health Canada in 2016.
Eve & Co is led by a team of agricultural experts and has a licenced 220,000 sq. ft. scalable greenhouse production facility located in Middlesex County, Ontario with 32 acres of adjacent land for future expansion. Eve & Co has commenced construction of an additional 780,000 sq. ft. proposed expansion, bringing Eve & Co’s total anticipated greenhouse capacity to 1,000,000 sq. ft.
The Company’s website can be visited at www.evecannabis.ca
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this press release constitute forward-looking information. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the terms of the credit facilities and the Company’s related expansion and construction plans, future, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict, including those described in the Company’s management’s discussion and analysis for the three and twelve months ended October 31, 2018 which is available on the Company’s SEDAR profile. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities law.