Mr. Pedro Azevedo reports
NANOXPLORE ANNOUNCES CLOSING OF $60M NEW CREDIT FACILITY AND PROVIDES UPDATE ON THE FINANCING OF ITS 5-YEAR STRATEGIC PLAN
Nanoxplore Inc. has closed a new credit facility with the Royal Bank of Canada (RBC). Under the agreement, RBC will provide Nanoxplore's subsidiaries with up to $60-million.
The credit facility, inclusive of an existing equipment lease and other financial products, will provide a $10-million revolving credit line, up to $45-million in equipment leasing and $5-million in term loans, and will carry interest rates similar to those the corporation currently pays. The new credit facility will allow for the reimbursement of existing loans of approximately $4.7-million with other lenders.
This expanded credit facility has been made possible by the improvements across the company's financial performance and metrics over the last year, and will provide additional liquidity and flexibility to execute its five-year strategic plan.
"I am very pleased we were able to secure a credit facility from a top lender such as RBC who sees the growth potential in the Nanoxplore business. This credit facility will provide Nanoxplore's subsidiaries with additional financial resources to drive long-term growth and expansion," says Pedro Azevedo, chief financial officer.
Today's announcement is a significant step forward in completing the company's financial requirements to meet its capital expenditure needs. The corporation is also in the process of finalizing up to $80-million in non-dilutive government incentives that will cover most of the remaining portion of its capital needs for execution of its five-year strategic plan.
Soroush Nazarpour, president and chief executive officer, said: "As recently announced, our capital requirement for our five-year strategic plan sits near $140-million, and we expect to be able to fund these initiatives through a combination of government support and the credit facility. As our capital allocation program continues in the next 24 months, we expect to see contribution to our financial results starting in 2026."
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