Freshlocal Secures $8.8 Million Credit Facility From Export Development Canada
Freshlocal Solutions Inc. (TSX: LOCL) announced today that it has entered into a credit facility agreement with Export Development Canada. The credit agreement will provide the grocery e-commerce firm with an $8.8 million secured credit.
According to the agreement, the firm may request 6-month periodic advances with the facility’s maturity coming 48 months after the first advance. The interest rate is variable with a 5.85% margin above prime per annum on drawn amounts.
The credit facility is meant “to support [the firm’s] international expansion efforts” related to its FoodX SaaS-based eGrocery Management Solution.
“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,” said CEO Simon Cairns. “This new partnership with EDC demonstrates their strong support for the use of leading-edge Canadian technologies to address the needs of global markets.”
Earlier this month, the Vancouver-based firm also secured a debt facility with Silicon Valley Bank that entails a required key milestone to secure a net cash advance from a new credit facility of at least $3.5 million.
Freshlocal Solutions last traded at $0.79 on the TSX.
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