Freshlocal Provides Update on its Capital Program
VANCOUVER, BC, Nov. 3, 2021 /CNW/ - Freshlocal Solutions Inc. (TSX: LOCL) (OTC: FLOCF) ("Freshlocal" or the "Company") is pleased to provide an update on the Company's efforts to strengthen its access to the liquidity necessary to grow its business.
Potential Sale of Non-Core Assets – As disclosed in the Company's Management's Discussion & Analysis for the three months and nine months ended July 3, 2021 and June 27, 2020 ("MD&A"), the Company continues to explore alternative sources of funding, including the potential sale of material non-core assets of its business as a source of growth capital. Freshlocal has engaged Fort Capital Partners as an advisor to lead the examination of the potential sale of such assets and other debt financing options. The Company has not established a definitive timeline to complete this potential sale of material non-core assets and there can be no assurance this will result in any transaction. The Company does not expect to make additional public comment regarding this matter until such disclosure is appropriate in accordance with applicable securities laws.
Silicon Valley Bank Debt Facility – The Company continues to make significant progress on finalizing forbearance terms with Silicon Valley Bank ("SVB") regarding the breach of certain financial covenants in relation to its debt facility with SVB as disclosed in the MD&A. SVB has not issued a notice of default in connection with such breaches, and the Company will provide an update once a definitive agreement with SVB has been executed. There can be no assurance that such an agreement will be reached, and further updates in this regard will be disclosed when appropriate in accordance with applicable securities laws.
DTC Eligibility in the United States – Freshlocal's common shares are now eligible for electronic clearing and settlement through the Depository Trust Company ("DTC") in the United States on the OTC under the symbol "FLOCF". DTC eligibility is expected to simplify the process of trading and enhance liquidity of Freshlocal's shares in the United States, with an accelerated settlement period and reduced costs for US-based investors and brokers.
About Freshlocal Solutions Inc.
Freshlocal Solutions Inc. is a Vancouver-based company that is building a leadership position in the provision of end-to-end grocery e-commerce solutions. The Company operates two primary businesses, FoodX and eGrocery, both of which support its corporate mission to leverage innovation and technology to create a sustainable and profitable food system for all. Food-X Technologies Inc. ("FoodX") is Freshlocal's scalable end-to-end SaaS-based eGrocery Management Solution (eGMS) which is designed to meet the needs of large and small grocery retailers while providing profitable unit economics. The FoodX eGMS is the culmination of over 20 years of experience in online grocery and the company's proven track record of delivering efficiently, sustainably and profitably. The Company's consumer eGrocery business has expanded into one of Canada's largest online grocery companies, with a focus on delivering fresh, local, organic produce and groceries, along with exceptional customer experiences. Freshlocal serves the main urban markets in Alberta and British Columbia through its brick-and-mortar store locations operating under the Blush Lane and Be Fresh banners and through SPUD.ca, the Company's award-winning online marketplace eGrocery platform. Freshlocal's common shares are listed on the Toronto Stock Exchange under the symbol "LOCL". Please visit www.freshlocalsolutions.com.
Notice on Forward Looking Information
Certain statements contained in this press release may be deemed "forward–looking statements" or "forward–looking information" within the meaning of applicable Canadian and U.S. securities laws. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward–looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward–looking statements or information will transpire or occur, including, but not limited to, the forbearance agreement as well as the outcome of the potential sale of Freshlocal's non-core assets and related opportunities. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Freshlocal's control. These risks, uncertainties and assumptions include, but are not limited to, the inability to complete the sale of non-core assets described in this press release and those risks described under "Risk Factors" in Freshlocal's Filing Statement dated April 9, 2021, a copy of which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. Freshlocal does not intend, nor does Freshlocal undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
SOURCE Freshlocal Solutions Inc.
Investor Relations: Ian S. Tharp, CFA, (416) 567-2563, [email protected]; Media Relations: [email protected]
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