Marijuana plants grow at LifeLine Labs in Cottage Grove, Minn.(Photo by THE ASSOCIATED PRESS)

Olds marijuana production facility could produce as much as 125-million grams

A $56-million debt financing agreement shows “confidence” in an Olds-area marijuana producer’s business.

Sundial Growers, which is in the process of construction a 545,000 square foot marijuana production facility, secured a $56 million debt financing arrangement though ATB Financial on Wednesday. This will help the development of the second phase of the large cannabis production facility in Olds.

“It’s significant in two ways — number one the number is large,” said Ted Hellard, Sundial Growers. “But it’s also significant because it’s traditional debt financing from a bank.”

Hellard said it has been hard for cannabis companies to get debt financing, leading many to publicly offer shares to support the company.

Sundial expects to complete all three phases of its construction in Olds by March of 2019. When it is completed it will have 280 purpose built modular units covering 545,000 square feet. Hellard said they expect to employ as many as 600 people.

To someone on the outside looking in it wouldn’t appear to be 280 separate units, but one large facility.

“It’s a huge project, I don’t think people can really understand the size,” said Hellard. “No room is linked to any other room in terms of airflow. This will be the largest, purpose-built, cannabis facility in the world.

“It will cover about 16 CFL football fields.”

Hellards said the configuration will help the producer have a higher yield and a more consistent product.

“It’s not a throw it in your grandmother’s pot and let it grow on the porch operation,” said Hellard.

Sundial hopes to be growing in the first phase of their construction by the end of March. The second phase they hope to have operational by July 1.

Hellard said they anticipate the facility will yield between 100-million and a 125-million grams of flower, the dried cannabis.

“Canada’s cannabis sector is a rapidly emerging industry with the potential for substantial and continued growth. ATB is excited to be working with Sundial,” said Max Herrera, ATB Financial Director, Diversified Services.

Like us on Facebook and follow us on Twitter

Just Posted

Hundreds come to Red Deer Rebels Fan Fest

The Red Deer Rebels met with hundreds of fans just a couple… Continue reading

Red Deer GoodLife no longer installing pool

Red Deer GoodLife Fitness members itching to swim will need to find… Continue reading

Hwy 2 detour Friday

Traffic detoured between Gaetz Avenue and Taylor Drive

Red Deer students are fighting subtle discrimination to help build a culture of tolerance

‘Day for Elimination of Racial Discrimination’ marked at local high school

WATCH: Red Deerians can have a say about crime fighting

Municipality will poll citizens about policing priorities

Facebook crisis-management lesson: What not to do

NEW YORK — The crisis-management playbook is pretty simple: Get ahead of… Continue reading

Calgary remains interested in 2026 bid, but awaits word from feds, province

Calgary city council approved a slate of moves towards a possible bid… Continue reading

Online threat to U.S. high school traced to girl, 14, in Canada, police say

American authorities say a 14-year-old girl in Canada has been charged with… Continue reading

Comedian Mike MacDonald remembered for gut-busting mental health advocacy

If laughter is the best medicine, then standup veteran Mike MacDonald was… Continue reading

The Weeknd, Bruno Mars to headline Lollapalooza in Chicago

CHICAGO — The Weeknd, Bruno Mars, Jack White and Arctic Monkeys will… Continue reading

No rest for the retired: Opioid crisis fills empty nests as grandparents step up

ST. JOHN’S, N.L. — She is a Newfoundland woman who worked hard… Continue reading

Duclos defends gender-neutral language amid criticism from opposition

MONTREAL — Families Minister Jean-Yves Duclos defended Service Canada’s decision to ask… Continue reading

Lawyer and negotiator: Thomas Molloy is new Saskatchewan lieutenant-governor

REGINA — Lawyer and negotiator Thomas Molloy has been sworn in as… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month