BC’s Community Savings Credit Union president and CEO Mike Schilling says his phone has been ringing off the hook with queries from cannabis businesses following a recent announcement that the lending institution had entered into credit agreements for a $10 million loan to BC cannabis producer Rubicon Organics. 

The agreements, or credit facilities, will help Rubicon repay a US$8 million bond in full, which was set to mature on December 31, 2024. That bond, a secured debenture, was owed to an investment group, Green Island Investments Ltd.

“To be honest, my phone has been ringing off the hook since Rubicon made this announcement because this is a close-knit industry and we’ve got lots of cannabis businesses across Canada calling us,”  Schilling tells StratCann.

He says the deal represents an example of the services the credit union can provide cannabis businesses of all kinds, not only in British Columbia but from across Canada through its partnership with groups like We Can Capital. Rather than seeing this as a unique offering for a cannabis business, he says it’s an example of the industry beginning to normalize, as these types of deals are common in many other industries. 

“Cannabis businesses don’t have access to normal banking facilities that other businesses have,” Schilling adds. “And that’s been our mission from day one, to provide some normalcy. We’re not providing anything special, we’re just trying to provide them with banking services that everyone else has access to. And that starts with basic banking services.” 

Regarding the deal, Janis Risbin, CFO at Rubicon, said: “We are pleased to announce the establishment of our new Credit Facilities, which underscores our commitment to strengthening our financial position and supporting our strategic growth initiatives. Our new Credit Facilities enhance our liquidity and provide us with the flexibility to invest in key projects that will drive long-term value for our shareholders. We believe that this strategic move positions us well to navigate the evolving market landscape and capitalize on future opportunities.” 

Community Savings is the largest provider of banking services in BC for cannabis businesses and, as such, treats the industry like any other, adds Schilling. 

“One of the commitments that Community Savings makes is not only are we going to provide these sorts of services, but we’re not going to charge a premium because you’re a cannabis business. We like working with cannabis businesses. We understand them, and they’ll pay the same rate as any other business in other industries.”

One of the issues cannabis businesses are often not aware of, he points out, is that they can leverage their assets, be it land, a facility, or equipment, to gain more access to working capital. One example of those services is Community Savings, which provides invoice factoring to cannabis producers. This can help these businesses leverage sales into provincial markets, speeding up payment options that sometimes take weeks or months from the provincial distribution boards.