TORONTO, ONTARIO--(Marketwired - July 28, 2016) - Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX
VENTURE:DLS), is pleased to announce the expansion of its credit facilities and an update with respect to the exercise of the
Company's common share purchase warrants.
Credit Facilities
Today the Company closed a securitization facility with a major Canadian life insurance company providing $75 million in
funding for the Company's lease and loan products.
The Company also closed a $20 million funding facility with another financial institution.
The Company renewed an existing securitization facility with a Schedule 1 Bank. The Company typically securitizes $3-4 million
per month under this facility.
This new underwriting capacity provides for a current blended funding cost below 4%. With the addition of this
underwriting capacity, the Company is well positioned to execute on its growth strategy over the coming year. The Company
continues to target prime quality originations through numerous outlets including direct to dealer relationships and partnerships
with OEMs.
Common Share Purchase Warrants
Since April 1, 2016, the Company has received cash proceeds of approximately $5.6 million as a result of the exercise of
approximately 18.9 common share purchase warrants. Included in this amount is 4.6 million warrants exercised by management and
the board. The exercise of warrants increases equity that can be leveraged to support the Company's portfolio growth
plans.
"The expansion of our credit facilities is clear recognition of the strength of the Company's platform for delivering high
quality consumer loans to the market. Building quality relationships with our funding partners is a continuing priority for the
Company and we look forward to expanding these relationships by adding further capacity in line with our business plans," stated
Michael Hilmer, Chief Executive Officer. "The Company has demonstrated success across the three key elements of any finance
business being: low cost and significant underwriting capacity, substantial high quality origination volume, and equity additions
to support our leverage covenants."
Forward Looking Statement
This news release contains certain "forward-looking information" within the meaning of applicable securities law including
statements regarding the Company, new funding capacity, funding under existing facilities and the future exercise of common share
purchase warrants. Forward looking information is frequently characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking
information is based on the opinions and estimates of management at the date the information is provided, and is subject to a
variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those
projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its
business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no
obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless
required by law. The reader is cautioned not to place undue reliance on forward-looking information.
About Dealnet Capital Corp.
Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions
including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and
engagement technology platform to attract home improvement dealers by providing front and back office services to support dealer
operations leading to origination growth.
For additional information please visit www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.