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Calgary, Alberta – (Newsfile Corp. – October 18, 2021) – Zedcor Inc. (TSXV: ZDC) (the “Society” Where “Zedcor“) is pleased to announce that after discussing alternative competitive financing offers, the Company entered into a new financing agreement with an Alberta-based credit union that offered terms and conditions best suited to the needs current and future growth plans of the Company. to:
1) A fully committed $ 6.1 million term loan for five years. The term loan bears interest at 5.15% and will have monthly principal and interest payments of $ 115,534. $ 4.4 million of the proceeds of the term loan will be used to repay the Company’s outstanding term loan which matures on January 1, 2023. The remaining amount will be used to repay debt that was contracted to fund the growth in the Company’s security business and MobileyeZ security towers fleet.
2) A $ 3.0 million revolving equipment financing facility that will be used to fund the Company’s 2022 capital program. Zedcor can take advantage of this facility at any time for up to 75% of new equipment purchases. Equipment financing drawings bear interest at prime rate + 2.0% and each drawing will be amortized over 5 years with mixed payments of principal and interest.
3) An authorized overdraft facility of up to $ 3.0 million, secured by the Company’s accounts receivable, up to 75%, less senior debt. The overdraft facility is due on demand and any outstanding overdraft bears interest at the prime rate + 1.5%.
The new financing contract is guaranteed by a first charge on the current equipment and after acquisition of the Company, a general guarantee contract, a subordination and deferral contract with a director of the Company concerning a note payable and other standard non-financial guarantees.
The agreement has the following annual financial requirements:
- For the year ended December 31, 2021, a debt service covenant changed from 1.25 to 1.00. The amendment relates to the amount of debt payments for 2021 assumed to be $ 2.2 million.
- For the year ended December 31, 2022 and beyond, a debt service covenant of 1.25 to 1.00 and a funded debt / EBITDA covenant of 3.00 to 1.00.
The extended credit facility, as well as the flexibility of the covenants for the end of fiscal 2021, allow the Company to focus on expanding its geographic footprint in markets across Canada and to continue to invest in the technology. Todd Ziniuk, President and CEO of Zedcor, said: “After a thorough review process that resulted in the company receiving numerous financing offers, we are delighted to partner with a local financial institution that believes into Zedcor’s growth opportunity and has offered financing that best suits the current needs of the business and is aimed at helping Zedcor continue to grow our business. This additional funding and significantly lower interest rate frees up cash flow so that we can continue to expand our MobileyeZ fleet, continue to grow the team and expand our brand across Canada. ”
In addition to completing its financing, the Company is pleased to announce its expansion in British Columbia with a new equipment branch located in Chilliwack. The branch opened on October 1 and will allow Zedcor to provide rental and security equipment service to customers in the Lower Mainland and Fraser Valley.
About Zedcor Inc.
Zedcor Inc. is a Canadian public corporation and a parent company of Zedcor Security Solutions Corp. Driven by our guiding principles of being pioneering, innovative and honest, Zedcor is committed to providing technology-based security and surveillance services in Western and Central Canada. The Company is disrupting the security industry with its three main service offerings to customers in all market segments: 1) rental, service and remote monitoring of its exclusive MobileyeZ security towers; 2) live monitoring of fixed site locations; and 3) security personnel. The Company is listed on the TSX Venture Exchange under the symbol “ZDC”.
Forward-looking statements and information
Certain statements included in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may be identified by words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “budget “,” should “,” project “, or similar words suggesting future results or expectations. In particular, forward-looking statements and information contained in this press release include, without limitation, the expansion of Zedcor’s security and surveillance activities, the expansion of the fleet, the marketing of security services and expansion of Zedcor’s service offering to other geographic regions. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, one should not place undue reliance on such forward-looking statements or information, as the Company cannot guarantee that such statements or information will prove to be correct. . Forward-looking statements or information are based on current expectations, estimates and projections which involve a number of assumptions about the future and uncertainties, including current forecasts and usage. Although the management of the Company believes that these expectations and assumptions reflected in such forward-looking statements or information are reasonable, there can be no assurance that such forward-looking statements or information will prove to be correct, and actual results may differ materially from those anticipated in such statements or information. To this end, any statements or information contained in this document that are not statements or information of historical fact may be considered as forward-looking statements or information and readers should not place undue reliance on such statements or information. prospective. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information to the contrary. , future events or any other reason, unless the Company is required by applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
For more information contact:
President and CEO
Phone. : 403-930-5430
E: [email protected]
Phone. : 403-930-5430
E: [email protected]
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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99977