TORONTO, May 5 (Bernama-GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI) (Maricann or the “Company”) is pleased to announce that Maricann has secured $42,500,000 in non-dilutive financing to further expand production in Germany.
The $42,500,000 non-dilutive financing comes from The Green Streaming Finance Company of Canada Inc. a Vancouver-based company that provides non-equity financing solutions for cannabis producers. The streaming payment will be made in return for the right to purchase 20% of production at an all in cost + 10% from expansion funded by Green Streaming in Germany. “We are pleased to be funding Maricann and their expansion efforts in Germany. This is a win-win relationship for Maricann and Green Streaming Finance, with no dilution to Maricann shareholders and a stable, reliable, renewable stream of revenue to Green Stream Finance from a proven producer of medicinal cannabis,” said Donald McInnes, founder of Green Streaming Finance. Under the terms of the agreement, Maricann will receive investment in two tranches, $15,000,000 and a $27,500,000.
This financing will fully fund the planned 150,000 sq. ft (13,935 square meters) expansion of cultivation operations in its Ebersbach Facility and an additional 250,000 sq. ft. (23,255 sq. m.) of expansion in a two tiered cultivation plan, as well as an outdoor hemp farm from which Maricann will derive high CBD content active pharmaceutical ingredients. The Ebersbach facility (West of Dresden) is a former Cargill plant constructed 20 years ago at a cost of 80 million EUR at that time. The facility is comprised of multiple individual clean rooms that are ideal for cultivation of cannabis. “The Ebersbach facility offers Maricann a significant advantage in cost of overall construction and speed to market. The infrastructure for cultivation of cannabis in an indoor secured environment is already in place. We simply need to add the fertigation system, lights and benches for growing, and then can be operational. Our competitors are spending north of $70,000,000 CAD for facilities with less than 1/3 the footprint of our Ebersbach location. To construct a similar facility today, the estimated cost would be over 120 million EUR. Maricann entered into a reservation agreement to purchase the facility for a total price of 3,410,000 EUR at closing,” said Benjamin Ward, CEO.
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