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Maple Leaf Accepts Loan Offer from Silver Arch Capital Partners
CALGARY, Alberta, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Maple Leaf Green World Inc. (“Maple Leaf” or the “Company”) (NEO: MGW, OTCQX: MGWFF) has accepted a loan offer from Silver Arch Capital Partners (the “Lender”) providing for a maximum amount of $5,250,000 (the “Loan”). Proceeds from the Loan will be used for the completion of construction of real property and improvements for the Company’s cannabis cultivation facility located in Telkwa, British Columbia (the “Telkwa Facility”). The maximum initial draw of the Loan is $2,875,000. Silver Arch Capital Partners is a private lender in the commercial real estate market based in Hackensack, N.J., U.S.A. website: www.silverarchcp.com.
Collateral for the Loan consists of the real property and improvements thereon located at the Telkwa Facility. The Loan shall be evidenced by a full set of loan documentation, first mortgage or deed of trust covering the Telkwa Facility, granting the Lender a first priority security interest in the Telkwa Facility.
The interest rate for the term of the Loan shall be equal to the greater of (i) twelve percent (12%); and (ii) the sum of (a) the Wall Street Journal prime rate, plus (b) 700 basis points. The Loan term is for 18 months, interest only, and there may be two six-month extensions, upon payment of 1% of the Loan amount per extension and provided the Loan is not in default. The origination fee is three percent (3%) of the Loan amount. In the event that the Loan is not advanced or if the Company fails to close the Loan, the Company has agreed to pay the Lender a break-up fee of 1% of the Loan amount in the event the Company accepts the Loan offer and the Company fails to close the Loan with the Lender.
The Loan is expected to be advanced on or about November 9, 2018, or such other date as may be determined by the Lender. There can be no guarantee that the maximum amount of the Loan will be advanced or at all by the Lender as closing shall also be subject to complete and acceptable due diligence and customary loan documentation. Further information regarding closing of the Loan will be released in due course.
For further information regarding the Company, please visit www.mlgreenworld.com.
About Maple Leaf Green World Inc.
Maple Leaf is a public Canadian company that focuses on the cannabis industry in North America. The Company currently operates cannabis projects in British Columbia and Nevada. With over ten years of extensive greenhouse management experience, the Company applies its eco-agriculture knowledge and cultivation technology to produce contaminant-free organic cannabis products. Maple Leaf’s long-term objective is to produce cannabis oil and to export its products to approved countries. The Company’s common shares are listed for trading on the Aequitas NEO Exchange Inc. under the symbol “MGW” and on the OTCQX market under the symbol “MGWFF”.
This press release includes certain statements and information that may be deemed “forward-looking statements” within the meaning of applicable Canadian securities legislation. Such forward-looking information relates to future events about Maple Leaf’s intended business plans and operations, including the entrance into the Loan as well as the construction of the Telkwa Facility. All information other than historical fact may constitute forward-looking information within the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget” or “budgeted”, “scheduled”, “estimates”, “projects”, “intends”, “proposes”, “complete”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to the development and operation of the Company’s projects, risks associated with general economic conditions, adverse industry events, marketing costs, loss of markets, future legislative and regulatory developments involving medical and recreational cannabis, inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms, the medical and recreational cannabis industry in Canada and the United States of America and the jurisdictions where the Company operates generally, income and sales tax and regulatory matters, competition, crop failure, currency and interest rate fluctuations, regulatory approvals including approvals from municipal, provincial, county, state, and federal regulatory bodies in Canada and the United States of America. Although the Company has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed, planned, or intended. Accordingly, such list of factors are not exhaustive. Additional information on these and other factors which could affect the Company’s operations and financial results are discussed in the sections relating to risk factors of the business filed in the Company’s required securities filings with applicable securities commissions or other securities regulatory authorities and which may be accessed through the SEDAR website (www.sedar.com).
Specifically, this press release includes, but is not limited to, forward-looking information with respect to the Loan and the Telkwa Facility, and matters relating thereto. Forward-looking information necessarily involves both known and unknown risks and uncertainties that could cause actual result to differ materially from those anticipated.
Although, the Company believes that expectations and assumptions reflected in the forward-looking information are reasonable, there can be no assurance that any forward-looking information will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking information contained in this press release or that is incorporated by reference herein, whether as a result of new information, future events or results or otherwise, except in accordance with applicable securities laws.
For further information, please contact:
Maple Leaf Green World Inc.
Raymond Lai, Chairman, President & CEO