Sundial secures $56M in financing from ATB Financial

A medical marijuana grower in Olds, Alta., has secured a $56-million financing deal with ATBFinancialin order to acceleratethe second and third phases of the company's expansion plans.

That was the word Wednesday from Sundial Growers Inc., which plans to use the financing to developa 19,509-square-metre (210,000-square-foot) structure with threeproduction pods.The final $22 million will be used to launchthe company's Phase 3 expansion in Alberta.

When all three phases are completed by next year, Sundial says it will be "the largest purpose-built indoor cannabis facility in the world," according to a release.

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TheATBfinancingmarks a "key milestone" of sorts for the cannabis industry, according to Sundial executive chairman TedHellard.

"This $56 million is one of the first non-dilutive investments to take place in the cannabis industry from a leading financial institution likeATB," he said, adding it willaccelerate the company's expansion plans inOlds, Alta.

Sundial, a privately-owned medical marijuana producer, already operates a large production facility about 15 kilometres north of Calgaryin Rocky View County.

On Tuesday, the company appointed Coca-Cola veteran Torsten Kuenzlen, who also had consumer goods experience with Molson Coors, as Sundial's CEO.

ATB Financial, also known as Alberta Treasury Branches, is a provincial Crown corporation.

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