VANCOUVER, BC, Dec. 30, 2021 /CNW/ - Freshlocal Solutions Inc.
(TSX: LOCL) (OTC: FLOCF) ("Freshlocal" or the "Company") is pleased
to announce it has entered into a secured $8.8 million credit facility agreement with
Export Development Canada ("EDC") dated December 28, 2021 (the "EDC Facility") to support
Freshlocal's international expansion efforts related to its FoodX
SaaS-based eGrocery Management Solution (eGMS).
The EDC Facility enables requests by the Company for periodic
advances to be made for a period of six (6) months, subject to the
satisfaction of certain customary conditions, and the EDC Facility
has a maturity date 48 months from the date of the first advance
(the "Maturity Date"). Principal repayment will consist of 36
equal, consecutive, monthly installments commencing on the tenth
(10th) day of the thirteenth (13th) month
following twelve (12) months of interest only payments; to be
followed by a lump sum payment to repay the outstanding loan in
full at the Maturity Date. The EDC Facility's interest rate is
variable with a 5.85% margin above prime per annum on drawn amounts
and has no prepayment penalty or standby charge.
As previously announced on December 2,
2021 in relation to the Company's debt facility with Silicon
Valley Bank ("SVB"), the EDC Facility is intended to allow
Freshlocal to meet a key milestone under the terms of the
forbearance agreement with SVB, which requires the Company to
obtain a net cash advance from a new credit facility of at least
$3,500,000 on or before January 15, 2022.
Freshlocal introduced its FoodX end-to-end, SaaS-based eGMS to
bring optimized, efficient, and sustainable online grocery
fulfillment capabilities to the global grocery marketplace. The
FoodX platform draws on Freshlocal's deep expertise in providing
award-winning, multi-channel retail grocery services to its
customers. Market leading grocers can now achieve best in class
eGrocery economics while at the same time accessing Freshlocal's
FoodX platform and capabilities to reduce food waste – one of the
most pressing challenges that must be addressed in the global food
business. The FoodX eGMS is ideally positioned to provide a proven
eGrocery solution to a global base of potential grocers and
retailers.
"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. This new
partnership with EDC demonstrates their strong support for the use
of leading-edge Canadian technologies to address the needs of
global markets," stated Simon
Cairns, Chief Executive Officer of Freshlocal. "As our team
ramps up FoodX's fulfillment capabilities overseas, the EDC
facility provides financial resources at a time of material growth
in our FoodX business."
Fort Capital Partners acted as an advisor on both the SVB and
EDC financing agreements.
About Freshlocal Solutions Inc.
Freshlocal Solutions Inc. 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
innovate food systems for people, planet and prosperity. Food-X
Technologies Inc. ("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 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
and through SPUD.ca, the Company's award-winning online marketplace
eGrocery platform. Freshlocal's common shares are listed on the
Toronto Stock Exchange under the symbol "LOCL". Please visit
www.freshlocalsolutions.com.
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 the EDC Facility, and
the Company's forbearance agreement with SVB as announced in the
Company's news release dated December 2,
2021. 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.