Freshlocal Receives $8.8 Million Secured Credit Facility from Export Development Canada
VANCOUVER, BC, Dec. 30, 2021 /CNW/ - Freshlocal Solutions Inc. (TSX: LOCL) (OTC: FLOCF) ("Freshlocal" or the "Company") is pleased to announce it has entered into a secured $8.8 million credit facility agreement with Export Development Canada ("EDC") dated December 28, 2021 (the "EDC Facility") to support Freshlocal's international expansion efforts related to its FoodX SaaS-based eGrocery Management Solution (eGMS).
The EDC Facility enables requests by the Company for periodic advances to be made for a period of six (6) months, subject to the satisfaction of certain customary conditions, and the EDC Facility has a maturity date 48 months from the date of the first advance (the "Maturity Date"). Principal repayment will consist of 36 equal, consecutive, monthly installments commencing on the tenth (10th) day of the thirteenth (13th) month following twelve (12) months of interest only payments; to be followed by a lump sum payment to repay the outstanding loan in full at the Maturity Date. The EDC Facility's interest rate is variable with a 5.85% margin above prime per annum on drawn amounts and has no prepayment penalty or standby charge.
As previously announced on December 2, 2021 in relation to the Company's debt facility with Silicon Valley Bank ("SVB"), the EDC Facility is intended to allow Freshlocal to meet a key milestone under the terms of the forbearance agreement with SVB, which requires the Company to obtain a net cash advance from a new credit facility of at least $3,500,000 on or before January 15, 2022.
Freshlocal introduced its FoodX end-to-end, SaaS-based eGMS to bring optimized, efficient, and sustainable online grocery fulfillment capabilities to the global grocery marketplace. The FoodX platform draws on Freshlocal's deep expertise in providing award-winning, multi-channel retail grocery services to its customers. Market leading grocers can now achieve best in class eGrocery economics while at the same time accessing Freshlocal's FoodX platform and capabilities to reduce food waste – one of the most pressing challenges that must be addressed in the global food business. The FoodX eGMS is ideally positioned to provide a proven eGrocery solution to a global base of potential grocers and retailers.
"Over the course of 2021, we are excited to have built a new relationship with EDC and to have secured access to an important new source of capital for our FoodX eGrocery solution. This new partnership with EDC demonstrates their strong support for the use of leading-edge Canadian technologies to address the needs of global markets," stated Simon Cairns, Chief Executive Officer of Freshlocal. "As our team ramps up FoodX's fulfillment capabilities overseas, the EDC facility provides financial resources at a time of material growth in our FoodX business."
Fort Capital Partners acted as an advisor on both the SVB and EDC financing agreements.
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 innovate food systems for people, planet and prosperity. 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 and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to the EDC Facility, and the Company's forbearance agreement with SVB as announced in the Company's news release dated December 2, 2021. Often, but not always, forward-looking statements or information can be identified by the use of words such as "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions including among other things, assumptions about general business and economic conditions of the Company and the market in which it operates. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the eGrocery industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to unanticipated operational difficulties (including failure of technology or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); changes in general economic conditions or conditions in the financial markets; changes in laws; risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions; the ability to obtain financing as required; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Freshlocal Solutions Inc.
Investor Relations: Ian S. Tharp, CFA, (416) 567-2563, [email protected]; Media Relations: [email protected]
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