Radient Technologies (TSXV: RTI) has entered into a binding letter of intent for a sale leaseback transaction involving all three of its Edmonton facilities. The binding LOI will see the property sold for $20 million in total.
Under the terms of the binding letter of intent, the land and buildings, upon sale, will be immediately leased back to Radient Technologies for a period of twenty years. Prior to closing, a currently undetermined portion will be advanced to Radient to enable the company to complete initial construction requirements for facility three. An implicit interest rate of 13% was used for the transaction.
The sale leaseback arrangement is expected to close by March 30, 2020. Funding from the transaction is anticipated to be put towards general corporate purposes, paying down of long term debt, and to pay for the construction of facility three.
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The company also concurrently announced that it expects to meet or exceed prior given third quarter guidance for fiscal 2020 of at least $10 million in revenues for the period ended December 31, 2019.
Radient Technologies last closed at $0.36 on the TSX Venture.
Information for this briefing was found via Sedar and Radient Technologies. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
