SIMPLY BETTER BRANDS ANNOUNCES NEW PARTNERSHIP WITH BMO AND CLOSING OF USD $10 MILLION CREDIT FACILITY TO SUPPORT THE FUTURE GROWTH OF TRUBAR™
VANCOUVER, Dec. 2, 2024 /CNW/ - Simply Better Brands Corp. ("SBBC" or the "Company") (TSX Venture: SBBC) (OTCQB: SBBCF) announces the successful closing of a new USD $10 million credit facility with the BMO Corporate Finance Division ("BMO") for its 100% owned subsidiary TRU Brands Inc. The new credit facility replaces the previously announced credit facilities earlier this year with a different Tier 1 Canadian Bank. This new facility is supported by the Export Development Canada (EDC) Trade Expansion Lending Program (TELP) guarantee.
The Company intends to use the credit facility to support the expansion of TRUBARTM sales in the U.S., Canada, and other international markets. The new larger facility also allows TRUBARTM to leverage both its accounts receivable and inventory to borrow against.
Kingsley Ward, SBBC Chairman and CEO commented, "We are excited to have entered this new partnership with BMO that will enable us to put additional resources and investment behind the growth of TRUBARTM in North America and international markets. This new USD $10 million credit facility is better structured to support our expected sales growth into 2025 as it allows us to borrow against both our accounts receivables (A/R) and inventory, compared to the prior USD $5 million facility which was limited to borrowing against our A/R only. With this new credit facility in place, we can confidently scale our operations, invest in innovation and meet the increasing demand for our TRUBARTM product offerings."
BMO commented, "We are proud to partner with Simply Better Brands. This credit facility reflects our commitment to supporting high growth businesses. We expect this funding will enable Simply Better Brands to expand their product sales and reach new markets."
Under the terms of the credit facility, up to USD $10 million will be made available to Tru Brands Inc. and its Canadian subsidiary Trubrands Snack Company Inc. in the form of a margin facility based on TRUBAR's accounts receivables and inventory. The credit facility interest rate is based on Canadian prime rate or US base rate plus 3.50% per annum. The interest rate includes all fees payable to Export Development Canada (EDC) in respect of the TELP guarantee, currently 1.75% per annum.