The Bank of Montreal is reasserting itself as a top lender to the Canada’s nascent cannabis industry.

Aurora Cannabis announced on Tuesday it has secured a $200-million debt facility with BMO, comprised of a $150-million term loan and a $50-million revolving credit facility that will mature in 2021.

Under the terms of the agreement, the debt facility could be increased to $250 million. The initial agreement is still subject to additional due diligence, negotiations over documentation, and other conditions.

"This is by far the largest traditional debt facility in the cannabis industry to date,” said Aurora CEO Terry Booth in a release. “The funds provide us additional fuel to complement our end-to-end portfolio of vertically integrated, geographically and horizontally diversified assets, aimed at building a pre-eminent global cannabis company with a superior margin profile."

The debt arrangement will be secured by various Aurora facilities, including its new Sky plant in Alberta.

“We believe this is a major milestone in the cannabis industry and a validation of our operational effectiveness,” Aurora Cannabis CFO Glen Ibbott said in a release. “It also marks an exciting new stage of our long-term relationship with BMO, a Tier 1 bank with a sterling domestic and international reputation."