Mr. David Montpetit reports

D-BOX TECHNOLOGIES ANNOUNCES AMENDMENTS TO LOAN FACILITIES WITH NATIONAL BANK OF CANADA AND THE BUSINESS DEVELOPMENT BANK OF CANADA

D-Box Technologies Inc. has entered into amending agreements relating to its loan facilities with the National Bank of Canada (NBC), via its technology and innovation banking group, and the Business Development Bank of Canada (BDC), providing for, among other things:

• An upsize of its operating line of credit with NBC from $4-million to $5.5-million, a reduction of the applicable interest rates for Canadian-dollar and U.S.-dollar loans by 75 basis points from prime plus 3.25 per cent to prime plus 2.50 per cent, and certain changes to the corporation's financial covenants;
• An extension of the maturity of the $1-million term loan entered into in September, 2021, with NBC and guaranteed by the BDC as part of the Highly Affected Sectors Credit Availability Program, from Sept. 7, 2024, to Sept. 30, 2025;
• An extension of the maturity of the $2-million term loan entered into in July, 2020, with the BDC, from June, 2026, to June, 2028.

The upsized line of credit will be secured by first-ranking hypothec and security interests on all movable/personal property of the corporation and its U.S. subsidiary and a guarantee from Export Development Canada. A portion of the available proceeds from upsizing the line of credit was used to fully repay the $1-million term loan with NBC that was scheduled to mature in February, 2024, and that had a balance of approximately $870,000.

"These favourable amendments are a testament to D-Box's solid financial performance in the recent quarters and the confidence shown by our valued financial partners," said David Montpetit, chief financial officer of D-Box. "A special thank you to the Economic Development Agency of Canada for helping us secure the amendments to our line of credit. The upsizing of our line of credit and the extended maturities on our term loans provide greater flexibility in our treasury management while reducing our financial cost. These changes better position us as we continue to focus on building royalty-based revenue and driving profitable growth."

"Our group is a staunch ally of companies in the technology and innovation sectors," said Maxime Page, director, technology and innovation banking at NBC. "We believe in the growth potential of D-Box as well as in their business strategy, and are pleased to support them in their future projects."

About D-Box Technologies Inc.

D-Box creates and redefines realistic, immersive entertainment experiences by moving the body and sparking the imagination through effects: motion, vibration and texture. D-Box has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether it is movies, video games, music, relaxation, virtual reality applications, metaverse experience, themed entertainment or professional simulation, D-Box creates a feeling of presence that makes life resonate like never before. D-Box Technologies is headquartered in Montreal with offices in Los Angeles, United States, and Beijing, China.

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