Goodfood Announces New $ 46 Million Syndicated Bank
MONTREAL, 01 Dec. 2020 (GLOBE NEWSWIRE) – Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: FOOD), a leading online grocery company in Canada, announced the closing of a new bank financing totaling $ 46 million, including a revolving facility of $ 27.5 million (from $ 10 million), a term loan facility of $ 12.5 million, and $ 6 million in additional short-term financing. The financing transaction was carried out by Desjardins Capital Markets with the participation of Investissement Québec.
Goodfood will use the funds to support the continued growth of the Company through the expansion and automation of capital spending, refinancing of existing credit facilities and for general corporate purposes. The facilities offer flexible and improved financial terms, including variable interest rates of the bankers’ acceptance rate plus 250 basis points, and mature in November 2023.
“We are delighted to have had access to increased debt financing to support our strategic plan. Combined with our cash balance, we now have access to over $ 125 million in cash, providing great flexibility to propel the business into its next phase of growth, ”said Philippe Adam, CFO of Goodfood. “This non-dilutive financing with an attractive cost of capital also gives us the means to continue to strategically manage our capital allocation and our working capital,” concluded Mr. Adam.
“As we continue to penetrate and gain market share in the online grocery industry, we are very happy to be able to count on the support of great and united partners such as Desjardins and Investissement Québec,” added Jonathan Ferrari, CEO of Goodfood. “We are excited about the opportunity that lies ahead and the positive trends resulting from the acceleration of adoption of online grocery and dining solutions by Canadians. With this financing transaction and our continued solid execution, we are ideally positioned to consolidate our leadership in this high growth market, ”concluded Mr. Ferrari.
Goodfood (TSX: FOOD) is a leading online grocery company in Canada, providing fresh meal solutions and grocery items that allow members across Canada to enjoy delicious meals at home every day. days. Goodfood’s mission is to do the impossible, from farm to kitchen, enabling members to plan their weekly meals and shop in minutes. Goodfood members have access to a unique selection of products online as well as exclusive pricing made possible by its world-class direct-to-consumer distribution ecosystem that eliminates food waste and costly retail overheads. The Company’s main production facility and administrative offices are located in Montreal, Quebec, with five other production facilities located in the provinces of Quebec, Ontario, Alberta and British Columbia. A seventh production facility located in the province of Ontario is currently under construction and is expected to begin operations in 2021. As of August 31, 2020, Goodfood had 280,000 active subscribers. www.makegoodfood.ca
Unless otherwise indicated, all amounts in this press release are expressed in Canadian dollars.
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This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. This forward-looking information includes, but is not limited to, information about our goals and strategies to achieve those goals, as well as information about our beliefs, plans, expectations, expectations, estimates and intentions. This forward-looking information is identified by the use of terms and expressions such as “could”, “would”, “should”, “could”, “expect”, “intend”, “estimate”. “,” Anticipate “,”, “anticipate”, “believe” and “continue”, as well as the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms. terms and expressions. Forward-looking information is provided for the purpose of helping the reader understand the Company and its activities, operations, prospects and risks at any given time in the context of possible historical and future developments and, therefore, the reader is cautioned that these information may not be suitable for other purposes.
Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those. disclosed or implied by such forward-looking information. These risks and uncertainties include, without limitation, the following risk factors which are discussed in more detail under “Risk Factors” in the Company’s Annual Information Form for the year ended August 31, 2020 available on SEDAR at at www.sedar.com: limited operating history, negative operating cash flow, food industry, quality control and health issues, regulatory compliance, industry regulation, public safety issues, recalls products, damage to Goodfood’s reputation, transportation disruption, product liability, ownership and protection of intellectual property property, evolving industry, organizing activities, dependence on management, factors that may prevent realization objectives of growth, competition, availability and quality of raw materials, environmental regulations and employee health and safety online security breaches and disruptions, reliance on data centers, openness source license compliance, future capital requirements, operational risk and insurance coverage, my growth management, limited number of products, conflicts of interest, litigation, catastrophic events, risks related to payments from customers and third parties, being accused of infringing the intellectual property rights of others and, climate change and environmental risks. Although the forward-looking information contained in this document is based on what we believe to be reasonable assumptions, readers are cautioned against placing undue reliance on such information as actual results may differ from forward-looking information. Certain assumptions have been made in preparing forward-looking information regarding the availability of capital resources, business performance, market conditions and customer demand. In addition, the information and expectations set forth herein are subject to and may change significantly in relation to developments regarding the COVID-19 pandemic and its impact on product demand, labor mobility, continuity of the supply chain and other elements beyond our control. Therefore, all forward-looking information contained in this document is qualified by the foregoing caveats, and there can be no guarantee that the results or developments we anticipate will materialize or, even if they materialize, whether they will have the expected consequences or effects on our business, financial condition or results of operations. Unless otherwise indicated or the context indicates to the contrary, forward-looking information contained in this document is provided as of the date hereof, and we do not undertake to update or modify such forward-looking information, whether as a result of new information, future events or otherwise. , unless required by applicable law.