Prince Albert, Saskatchewan--(Newsfile Corp. - December 1, 2020) - Today, Tell-Capital announces it has arranged a significant non-collateralized $250,000 loan for Prairie Cannabis Ltd. The loan represents a financial windfall for the independently-owned cannabis retail store as it prepares to expand to two new stores in Saskatchewan. Tell-Capital's $250,000 unsecured loan is noteworthy because financial credit options have been hard to come by for Canadian cannabis businesses since legalization. Mainstream risk-averse bank institutions have claimed reputational risk when assessing cannabis companies' negative historical stigma surrounding cannabis. This "non-collateralized" financial injection marks a significant departure from the norm since Prairie Cannabis Ltd. is not forfeiting any stake in its equity. Tell-Capital hopes this move will help democratize and further normalize lending practices for Canadian cannabis companies.
Prairie Cannabis Team Photo
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"Prairie Cannabis Ltd. Is very pleased that Tell-Capital is stepping up and starting to serve the cannabis industry by sourcing capital funds to loan to independently-owned cannabis companies. We have experienced difficulty getting credit cards, lines of credit, loans, and mortgages for our retail cannabis business in the traditional banking sector and have had to invest personal funds and use personal credit facilities up to this point."Jim Southam, President of Prairie Cannabis Ltd.
Since legalization financing/lending options have been incredibly scarce, COVID-related lockdowns present an even more dire challenge for recent upstarts in Canada's relatively young legal cannabis industry. Tell-Capital hopes other similar cannabis companies take advantage of the brokering services they provide; whether it be for small, medium or large-scale businesses. Many private regulated-industry companies lack equitable access to non-collateralized commercial credit and capital options. Access to capital is crucial in the early startup and growth phases of a small business. As canna-skepticism looms large in Canada's mainstream banking institutions, many banks take good equity plays with "handcuffed" small-business players in Canada's legal recreational cannabis sector.
Prairie Cannabis Logo
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"Tell-Capital's great team has been extremely pleasant and enjoyable to work with, and we are grateful to finally have access to loans to help fund the expansion of our business in the recently legalized cannabis industry."
Janet McRoberts, & CEO of Prairie Cannabis Ltd.
Tell-Capital is proud and eager to help other businesses in similar financial standings secure the critical investments needed to scale-up and meet the growing challenges of maintaining profitability through the winter season. It is worth noting that Tell-Capital specializes in investment loan options across multiple sectors: E-Commerce, Retail, Automotive, Health + Beauty, Restaurant/Cafe/Bistro, Skilled Trades, Manufacturing, and other emerging industries. Tell-Capital invites other interested parties to reach out to the media contact below, who can put you in touch with the team.
To qualify, Tell-Capital requires 6-months of business operation, with at least $10,000 gross/monthly sales. Cannabis businesses that meet these two criteria may have financing options available to them. Cannabis contributes $8.16 Billion towards the Canadian economy, which has become increasingly significant during recent economic stagnation due to the Coronavirus pandemic. Tell Capital specializes in sourcing critical capital funds for small-medium sized businesses and hopes this announcement looks forward to helping small businesses survive, and thrive into 2021. Prairie Cannabis will be using the $250,000 to open two brand new locations in the province, but Tell-Capital has options available for funding up to $500,000.
We encourage any interested media to reach out to the media contact below, to discuss what this "first-of-its-kind" loan means as a potential lifeline for Prairie Cannabis Ltd. and other Canadian businesses in these dire times.
MEDIA CONTACT:
Alex Krause
519.835.8345
Alex@alanaldous.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69249
