Toronto, Ontario--(Newsfile Corp. - June 9, 2023) - PesoRama Inc. (TSXV: PESO) (OTCQB: PSSOF) ("PesoRama" or the "Company") is pleased to announce that, today, it has entered into a binding senior secured revolving credit facility (the "Loan Agreement") for up to $20M (the "Loan") with Third Eye Capital Corporation (the "Agent") on behalf of certain lenders (the "Lenders"). The Loan will support the Company's continued expansion through the construction of new JOi Dollar Plus Stores in Mexico and the expansion of the Company's inventory and product offerings.
The Loan matures in three years and will be made available subject to a borrowing base up to a maximum of $20M. The Loan will bear interest equal to the greater of: (i) 13.5%; and (ii) 7.55% above the Prime Rate posted by the Royal Bank of Canada ("Interest"). The Interest is compounded and payable monthly in arrears and subject to interest reserve requirements.
"Today is a day of celebration as we reach this milestone and closing of this new credit facility," said Rahim Bhaloo, Founder and Executive Chairman. "The successful establishment of this facility demonstrates the effectiveness of our business model, strong market demand and the overall opportunity that the Mexican market presents. I am incredibly proud of everything our team has been able to achieve and will build on this growing momentum as we strategically expand throughout Mexico. Congratulations and thank you to the whole PesoRama and Third Eye teams, our loyal customers and our shareholders who got us here."
"After several months of due diligence with both Canadian and Mexican management and shareholders, which included physical visits to multiple stores and inventory locations, we are pleased to structure a financing specifically tailored to meet PesoRama's growth plans," commented Omar Murad, Director of Special Situations at Third Eye Capital. "We look forward to helping spread 'JOi' across Mexico."
The Loan is subject to a closing fee of $800,000 to be paid in two installments to the Agent, for the rateable benefit of the Lenders. A standby fee equal to 1% will be paid annually by the Company to the Agent, for the account of the Lenders, calculated and payable quarterly in arrears, of the difference between the daily revolver advances outstanding and the revolver limit during such quarter. An annual monitoring fee of $50,000 will be paid by the Company to the Agent, which fee will be paid in quarterly instalments beginning today and each three-month anniversary thereafter.
As partial consideration for entering into the Loan Agreement, the Company issued 15,060,838 non-transferable warrants to the Lenders (the "Warrants") to purchase up to an aggregate of 15,060,838 common shares of the Company. Each Warrant has an exercise price equal to $0.14 and is exercisable for five years.
The Lenders are not Non-Arm's Length Parties of the Company as defined pursuant to the policies of the TSXV. The Lenders do not own nor have any beneficial ownership of any securities of the Company other than the Warrants granted pursuant to the Loan Agreement.
The Loan was approved by the TSXV.
About PesoRama Inc.
PesoRama, operating under the JOi Dollar Plus brand, is a Mexican value dollar store retailer. PesoRama launched operations in 2019 in Mexico City and the surrounding areas targeting high-density, high-traffic locations. PesoRama's 21 stores offer consistent merchandise offerings which include items in the following categories: household goods, pet supplies, seasonal products, party supplies, health and beauty, snack food items, confectionery and more. For more information visit: http://pesorama.ca/.
For further information please contact:
Rahim Bhaloo
Founder & Executive Chairman
rahim@rahimbhaloo.com
416-816-3291
Erica Fattore
President & Chief Executive Officer
erica@joi.mx
In this press release, all references to "$" are to Canadian dollars.
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Notice regarding forward-looking statements:
This press release contains "forward-looking information" within the meaning of applicable securities laws, including, among other things, statements regarding the Company's proposed construction of new stores, the Company's proposed purchase of inventory, the amount that will be made available per advance pursuant to the Loan Agreement, the calculation of Interest, the payment of a standby fee, and the payment of an annual monitoring fee. While the Company believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements, including due to changes in consumer behaviour, general economic factors, changes in the Interest, the ability of the Company to execute its strategies, the availability of capital and the risk factors which are discussed in greater detail in the "Risk Factors" section of the Company's prospectus dated January 31, 2022 and filed under the Company's profile on www.sedar.com. The statements in this press release are made as of the date of this release. PesoRama undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of PesoRama, its securities, or its financial or operating results (as applicable).
Neither 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.
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