Don:
We currently have a number of term sheets looking to finance the Edmonton facility. We are currently working with some of the largest banks in the world and we are likely looking at 50-60 % bank financing for the first 100 million dollar phase ( out of which $12 million has been covered by the land purchase ).
We expect debt rates to be reasonable going forward and it wont take long until we are in higher revenue range and at which point we will be able to get even better debt terms and less need for equity financing. We will likely have a lot of revenue to finance our growth down the line.
The financing looks like this:
-Edmonton first phase, 100 million dollars, infrastructure for 3 sites ( 12 million is done by the land purchase)
-second phase will be 30 million
-third phase 30 million
The second and third phase we will likely will be using cashflow from the first phase.
For the first 100 million dollar phase minus the 12 million we have done from the land purchase we are likely looking at 50 % debt and 50 % equity. The debt rate will most likely be in the single figure range, definitely not double range.
ESG: Thanks for joining us today Don!