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Aurora Cannabis signs loan deal for up to $250 million with Bank of Montreal

The Aurora Sky facility being built by Aurora Cannabis at the Edmonton International Airport on Feb. 5, 2018.
The Aurora Sky facility being built by Aurora Cannabis at the Edmonton International Airport on Feb. 5, 2018. Tom Vernon, Global News

Aurora Cannabis Inc. has signed a loan deal with the Bank of Montreal for up to $250 million.

Aurora chief executive Terry Booth called it the largest traditional debt facility in the cannabis industry to date.

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Under the agreement, Aurora will receive a $150-million term loan and a $50-million revolving credit facility, both of which will mature in 2021.POT

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A short period after Ottawa’s legislation to legalize and regulate recreational marijuana comes into effect in October, the company may request an increase of up to $45 million for the term loan.

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BMO will also provide up to $5 million in other credit instruments.

The debt facility will be primarily secured by Aurora’s production facilities.