Quorum Announces Restructuring of Credit Facility with BDC Capital
February 08 2022 - 4:00PM
Quorum Information Technologies Inc. (QIS:TSXV) (“Quorum” or the
“Company”), a SaaS software and services company that provides
essential software that vehicle dealerships rely on for operations
throughout North America, today announced a highly favourable
restructuring of its credit with BDC Capital Inc. (“BDC Capital”).
The new facilities significantly reduce overall interest rates and
extends the maturity date.
Key highlights of the new facilities
include:
- Two loans to
replace the current $15M facility – a Mezzanine loan and a Cash
Flow loan
- $6.9M Mezzanine
loan to replace the disbursed funds of existing BDC Capital
loan
- A new cash flow
loan of up to $6.9M that can be utilized for acquisitions and
working capital
- The new cash
flow loan replaces the undisbursed funds of existing BDC Capital
loan
- The revised
facilities will reduce interest costs significantly
- No principal
payments on the Mezzanine loan until maturity and on the Cash Flow
loan until 2024
“We are grateful to BDC Capital for the
confidence they have shown in Quorum,” stated Maury Marks,
President and CEO of Quorum. “The refinancing of our outstanding
debt strengthens our balance sheet and provides Quorum with
meaningful financial flexibility which will help us to execute our
growth and profitability objectives going forward.”
“Quorum is a longstanding BDC client, and we are
pleased to restructure our loan facilities to best fit its growth
requirements going forward,” said Brian Whiteway, Director of
Growth and Transition Capital for BDC. “BDC is committed to helping
entrepreneurs succeed and create jobs for Canadians.”
About Quorum Information Technologies
Inc.
Quorum is a North American company focused on
developing, marketing, implementing and supporting its portfolio of
software and services for automotive dealerships that includes:
- XSellerator, a
Dealership Management System (DMS) that automates, integrates and
streamlines key processes across departments in a dealership, and
emphasizes revenue generation and customer satisfaction.
- DealerMine CRM,
a sales and service Customer Relationship Management (CRM) system
and set of Business Development Centre services that drives revenue
into the critical sales and service departments in a
dealership.
- Autovance, a
modern retailing platform that helps dealerships attract more
business through Digital Retailing, improve in-store profits and
closing rates through its desking tool and maximize their
efficiency and CSI through Autovance’s F&I menu solution.
- Advantage, a
full showroom system for independent dealerships and a management
system that also includes in-house leasing, inventory management,
and accounting.
Quorum Information Technologies Inc. is traded
on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For
additional information, please go to
QuorumInformationSystems.com.
About BDC Capital
BDC Capital is the investment arm of BDC, the
bank for Canadian entrepreneurs. With over $3
billion under management, BDC Capital serves as a strategic
partner to the country’s most innovative firms. It offers
businesses a full spectrum of capital, from seed investments to
growth equity, supporting Canadian entrepreneurs who have the
ambition to stand out on the world stage.
Visit bdc.ca/capital
Quorum Information Technologies Inc.
Contacts:
Maury MarksPresident and Chief
Executive Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Investor Relations ContactRon
ShuttleworthPartnerOak Hill
Financial647-500-7371rshuttleworth@oakhillfinancial.ca
BDCMedia
Relationsmediainfo@bdc.ca1-844-625-8321
Forward-Looking Information
This press release may contain certain
forward-looking statements and forward-looking information
(“forward-looking information”) within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but
not always, identified by the use of words such as “anticipate”,
“believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”,
“estimate”, “expect”, “may”, “will”, “project”, “should” or similar
words suggesting future outcomes. Quorum believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, which may cause Quorum’s actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking information.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) has reviewed this release and
neither accepts responsibility for the adequacy or accuracy of this
release.
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