Avante Logixx Inc. Announces Expanded and More Flexible Banking Arrangements.
June 30 2021 - 4:15PM
Avante Logixx Inc. (TSX.V: XX) (OTC: ALXXF) (“Avante” or the
“Company”) is pleased to announce that it has entered into a senior
secured Credit Agreement with The Bank of Nova Scotia to replace
the Company’s prior senior secured credit facilities and mortgage
provided by another bank.
The new credit agreement provides an $8,000,000
revolving credit facility, a $10,000,000 non-revolving term loan
facility and a $3,000,000 delayed-draw non-revolving term loan
credit facility, each with a three-year maturity date ending May
19, 2024. Interest rates and standby fees are subject to a
leverage-ratio pricing grid. The revolving credit facility limit is
subject to a borrowing base consisting of eligible accounts
receivable and inventory and the non-revolving term loan and
delayed-draw credit facilities are available to fund closing and
delayed purchase price payments applicable to future permitted
acquisitions. Repayment of drawings under the term loan and
delayed-draw credit facilities will occur at the rate of 2.50% per
quarter with the remaining balance due on the maturity date.
Security consists of a first secured pledge of all assets of the
Company and its subsidiaries. On a rolling four-quarter basis, the
Company must maintain a minimum Fixed Charge Coverage Ratio of 1.10
times and a maximum leverage ratio of Funded Debt (net of permitted
cash balances and excluding the Company’s convertible debentures)
to Adjusted EBITDA of 3.25 times, with a two-quarter step up
following a permitted acquisition to 3.50 times.
“We are pleased to have arranged increased
senior credit capacity aligned with our stated organic growth and
acquisition strategies, with extended maturity dates and debt
amortization requirements combined with greater covenant
flexibility,” said Steve Rotz, CFO. “I look forward to a long
partnership with our new senior lender.”
This news release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities described herein in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. This news release does
not constitute an offer of securities for sale in the United
States. The securities described herein have not been, nor will
they be, registered under the United States Securities Act of 1933,
as amended, and such securities may not be offered or sold within
the United States absent registration under U.S. federal and state
securities laws or an applicable exemption from such U.S.
registration requirements.
About Avante Logixx Inc.
Avante Logixx Inc. (TSXV: XX) is a Toronto based
provider of high-end security services. We acquire, manage and
build industry leading businesses which provide specialized,
mission-critical solutions that address the needs of our customers.
Our businesses continuously develop innovative solutions that
enable our customers to achieve their objectives. With an
experienced team and a proven track record of solid growth, we are
taking steps to establish a broad portfolio of security businesses
to provide our customers and shareholders with exceptional returns.
Please visit our website at www.avantelogixx.com and consider
joining our investor email list.
Avante Logixx Inc.
Craig CampbellCEO(416)
923-6984craig@avantelogixx.com
Forward-Looking Information
All statements in this press release, other than
statements of historical fact, may constitute “forward looking
information” with respect to Avante within the meaning of
applicable securities laws. Forward-looking information is often,
but not always, identified by the use of words such as “seek”,
“anticipate”, “plan”, “continue”, “planned”, “expect”, “project”,
“predict”, “potential”, “targeting”, “intends”, “believe”,
“potential”, and similar expressions, or describes a “goal”, or a
variation of such words and phrases or state that certain actions,
events or results “may”, “should”, “could”, “would”, “might” or
“will” be taken, occur or be achieved. This forward-looking
information includes statements with respect to, among other
things, the intention to create a platform capable of supporting a
business with significantly greater scale, Avante’s strategic plan,
Avante’s intentions to engage in mergers and acquisitions in the
near term, Avante’s intentions to identify, acquire and integrate
suitable targets for mergers and acquisitions, the ability to
achieve operational efficiencies and provide a better overall
customer experience, Avante’s run-rate, opportunities to grow
Avante’s revenue and Adjusted EBITDA profile, investments in
corporate infrastructure, Avante’s ability to execute and integrate
larger acquisitions, and the expected trajectory of corporate costs
as a percentage of revenue. Forward-looking information is subject
to a variety of known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ from
those expressed or implied by the forward looking information,
including, without limitation, the ability to identify, acquire and
integrate suitable targets for mergers and acquisitions, the
ability to control corporate costs, and the list of risk factors
identified in Avante’s Management Discussion & Analysis
(MD&A), Annual Information Form (AIF) and other continuous
disclosure, which list is not exhaustive of the factors that may
affect any of Avante’s forward-looking information. In connection
with the forward-looking statements contained in this and
subsequent press releases, Avante has made certain assumptions
about its business and the industry in which it operates and has
also assumed that no significant events occur outside of Avante’s
normal course of business. Although management believes that the
assumptions inherent in the forward-looking statements are
reasonable as of the date the statements are made, forward-looking
statements are not guarantees of future performance and,
accordingly, undue reliance should not be put on such statements
due to the inherent uncertainty therein. Avante’s forward-looking
information is based on the beliefs, expectations and opinions of
management on the date the statements are made, and Avante does not
assume any obligation to update forward-looking information,
whether as a result of new information, future events or otherwise,
other than as required by applicable law. For the reasons set forth
above, readers should not place undue reliance on 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) accepts responsibility for
the adequacy or accuracy of this release.
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