Freshlocal Solutions Inc. Announces New $15 Million Credit Facility with Silicon Valley Bank
VANCOUVER, BC, May 19, 2021 /CNW/ - Freshlocal Solutions Inc. (TSX: LOCL) ("Freshlocal" or the "Company") is pleased to announce that the company has entered into a new $15 million credit financing facility with Silicon Valley Bank (SVB).
"This non-dilutive credit facility provides us with important financial and operating flexibility at terms that we believe are favorable to the company," stated Peter van Stolk, Chief Executive Officer of Freshlocal. "These funds will assist us in advancing the development of our eGrocery Management Solution which enables the profitable provision of online grocery services at a time when the global grocery business is experiencing a rapid shift to on-line grocery."
Building upon over 20 years of experience gained while successfully offering online and retail grocery services to its customers in Western Canada, Freshlocal introduced its end-to-end, SaaS-based eGrocery Management Solution (eGMS), FoodX, to the global grocery market in 2018. FoodX brings profitable, efficient, and sustainable online grocery fulfillment capabilities to grocers of all sizes. Given the increased adoption of eGrocery, which has accelerated further as a result of the global pandemic, the FoodX eGMS is ideally positioned to provide a proven eGrocery solution to a global base of potential customers.
Since Freshlocal's introduction of FoodX, important customer wins have been secured including Carrefour Group, a longstanding global leader in the grocery industry that has implemented the FoodX system to serve its customers in Europe. Meridian Farm Market, a Mid-Market grocery retailer in Vancouver, B.C, has also been secured as a FoodX customer, with implementation taking place in late 2021.
"Using its deep experience in online grocery, Freshlocal has developed an important technology solution with the capabilities to drive profitable unit economics for the rapidly expanding global online grocery business," said Caterina Papadakos, Director, Technology Banking at Silicon Valley Bank. "We are pleased to be working with Freshlocal as it connects with new customers in this high-growth market."
In March 2021, Freshlocal secured a revolving loan facility of up to $15.0 million with SVB. The loan facility is secured by a first-priority cash collateral and matures on March 12, 2023. The proceeds from the facility will be used to fund the continued development of Freshlocal's FoodX eGMS platform as well as for expansion and working capital purposes.
About Freshlocal Solutions Inc.
Freshlocal Solutions 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 ("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 Solutions 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, as well as through SPUD.ca which is the Company's award-winning online eGrocery platform. Freshlocal's common shares are listed on the Toronto Stock Exchange under the symbol "LOCL". Please visit www.freshlocalsolutions.com.
About Silicon Valley Bank
For nearly 40 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com/canada.
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 statements or information with respect to the strategic partnership between the Company and Carrefour Group or Meridian Farm Market. 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.
Freshlocal contacts: Investor Relations: Ian S. Tharp, CFA, (416) 567-2563, [email protected]; Media Relations: [email protected]
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