Cann Group has announced that it has received credit approval from National Australia Bank (NAB) for a A$50 million secured debt facility.
The loan, provided through NAB’s agribusiness division, will be used by Cann Group to complete the first stage of its medicinal cannabis production site near Mildura.
Construction is expected to recommence at the Mildura site in February 2021, with the first stage completed by November and the first products processed and released by March 2022.
The total projected cost of completing the first stage is $112 million, with Cann Group having already spent approximately $53 million on site works and the facility superstructure.
A Victorian Government Development grant of $1.95 million will contribute to the project and help establish Cann as a major employer in the district, with 130 new jobs created once the facility is commissioned. This workforce will be supplemented by specialist overseas contractors that have been cleared to arrive in Australia in the new year as part of the workforce remobilisation program.
Once stage one is completed, it will have the capacity to produce 12,500 kgs of dry flower equivalent annually.
Cann Group CEO Peter Crock said: “The commissioning of production at Mildura is an important step in Cann’s plan to produce GMP-certified medicinal cannabis at scale. The facility will utilise world-leading technology, providing Cann with a globally competitive unit price based on substantial economies of scale.
“Securing the support of a tier one bank is a strong validation of our strategic growth plans. Given the building demand for our products, we have the confidence to immediately ramp up production as soon as the facility is ready.”