It said commercial bank facilities and equipment leasing options have become “unavailable on acceptable terms within the timeframes required”
() (OTCMKTS:TGODF) told investors that it was considering alternative financing options to finish construction at its facilities in Ancaster, Ontario and Valleyfield, Quebec.
The cannabis company had been looking at commercial bank facilities and equipment leasing, but said that due to changing market conditions, those options have become “unavailable on acceptable terms within the timeframes required.”
At its Ancaster facility, the grow rooms have been constructed and licensed by Health Canada, but about six weeks of work remain on the processing facility, the company said. That final component is expected to be submitted to Health Canada for licensing by the end of November.
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Once it is up and running, the facility is expected to have an annual production capacity of 17,500 kilograms. The first harvest is scheduled for the fourth quarter of 2019.
TGOD said it would prioritize financing that accelerates commercial production in order to secure a revenue boost. The company has supply agreements with Alberta, British Columbia and Ontario and plans to distribute nationally in 2020.
If it can’t secure the necessary financing at the right price, the company may revise back its schedule at Ancaster and Valleyfield.
TGOD is working to complete phase 1a at its Valleyfield plant, which the company claims is the world’s largest organic cannabis facility at 1.3 million square feet. Its annual production capacity for phase 1a is 65,000 kilograms, and the first harvest is expected by the end of the first quarter of 2020. Once all phases are complete, that number bumps up to 185,000 kilograms.
Contact Andrew Kessel at [email protected]
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