Odd Burger Secures Second Line of Credit
LONDON, ON, Dec. 28, 2023 /CNW/ - Odd Burger Corporation ("Odd Burger" or the "Company") (TSXV: ODD) (OTCQB: ODDAF) (FSE: IA9) is pleased to announce that it has entered into a credit agreement with GGC Holdings Ltd. (the "Lender") in the amount of CAD$250,000 (the "Second Credit Agreement"). This is the Company's second credit agreement announced in the past month and the Company now has access to a total of CAD$500,000 in credit facilities.
The Second Credit Facility has an initial drawdown fee of $1,500 and will bear interest at a rate of 15% per annum, maturing 1 year from issuance on December 15, 2024. The principal amount under the Second Credit Facility is convertible into common shares of the Company at the discretion of the Lender at a price of $0.25 per common share and is secured against all of the Company's assets pursuant to a general security agreement. The loan will be paid off in full in the event of a Nasdaq up-listing and associated capital raise. The Lender is an arm's length party to the Company.
The Company will use the Second Credit Facility to accelerate the growth of its consumer-packaged goods line which launched in September 2023, support the Company's franchise expansion in Canada, the U.S. and abroad and for general working capital purposes.
"We are incredibly excited to work with the people at GGC Holdings," says James McInnes, CEO and co-founder at Odd Burger. "Access to an operating line of credit is essential for our growth, especially as we shift more focus to our consumer-packaged goods line."
The credit facility is subject to final TSXV acceptance.
Odd Burger Corporation is a franchised vegan fast-food restaurant chain and food technology company that manufactures a proprietary line of plant-based protein and dairy alternatives. Its manufactured products are distributed to Odd Burger restaurant locations through its foodservice line and also sold at grocery retailers through its consumer-packaged goods (CPG) line. Odd Burger restaurants operate as smart kitchens, which use state-of-the art cooking technology and automation solutions to deliver a delicious food experience to customers craving healthier and more sustainable fast food. With small store footprints optimized for delivery and takeout, advanced cooking technology, competitive pricing, a vertically integrated supply chain along with healthier ingredients, Odd Burger is revolutionizing the fast-food industry by creating guilt-free fast food that can be enjoyed at its restaurant locations or at home though its CPG line. Odd Burger Corporation is traded on the TSX Venture Exchange under the symbol "ODD" and on the OTCQB under the symbol "ODDAF". For more information visit https://www.oddburger.com.
This news release contains forward-looking information for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward looking information contained or referred to in this news release includes statements relating to the use of proceeds of the credit facilities, ability to draw on such facilities, future restaurant openings, potential franchisees and a NASDAQ up-list, demand for our products and other similar statements. Forward-looking information is based on several factors and assumptions which have been used to develop such information, but which may prove to be incorrect including, but not limited to material assumptions with respect to the continued strong demand for the Company's products, the availability of sufficient financing on reasonable terms to fund the Company's capital requirements and the ability to obtain necessary equipment, production inputs and labour. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because the Company can give no assurance that such expectations will prove to be correct. Risks and uncertainties that could cause actual results, performance or achievements of the Company to differ materially from those expressed or implied in such forward-looking information include, among others, negative cash flow and future financing requirements to sustain and grow operations, limited history of operations and revenues and no history of earnings or dividends, expansion of facilities, competition, availability of raw materials, dependence on senior management and key personnel, general business risk and liability, regulation of the food industry, change in laws, regulations and guidelines, compliance with laws, unfavourable publicity or consumer perception, product liability and product recalls, risks related to intellectual property, difficulties with forecasts and management of growth and litigation many of which are beyond the control of the Company. For a more comprehensive discussion of the risks faced by the Company, please refer to the Company's annual information form filed with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Odd Burger Corporation
For investor inquiries, please reach out to Odd Burger investor relations at: [email protected].
Share this article