VANCOUVER, BC, June 19, 2024 /CNW/ - Simply Better Brands Corp. ("SBBC" or the "Company") (TSX Venture: SBBC) (OTCQB: SBBCF) is pleased to announce that it has secured USD $5 million in credit facilities with a Tier One Canadian bank for its 100% owned subsidiary TRU Brands Inc.
Under the terms of the agreement, up to USD $5 million (CAD $6.8 million) in credit facilities is available to Tru Brands Inc and its Canadian subsidiary Trubrands Snack Company Inc. in the form of a letter of credit or financial guarantees. The Company is also working with this bank on additional credit facilities to further reduce its cost of capital for Tru Brands Inc.
The credit facilities feature rates of 1.5% per annum with Letters of Guarantee and 2% per annum with Letters of Credit. In addition, the Company will incur additional fees on these credit facilities of approximately 2-2.5% as these credit facilities are 100% guaranteed by Export Development Canada (EDC). These credit offerings will substantially lower the cost of capital to 3.5-4% per annum compared to its current line of credit financing arrangement that averages 15% per annum.
The Company intends to use these credit facilities to support the expansion of TRUBAR™ sales in the U.S., Canada and other international markets.
Kingsley Ward, Chairman and CEO of SBBC said, "We are excited to partner with this market leading bank on these credit facilities. These facilities will support the expansion of sales of TRUBAR™ in our core U.S. market, Canada and other international regions by significantly reducing the cost of capital to finance the strong growth of our brand."
About Simply Better Brands Corp.
Simply Better Brands Corp. is an international omni-channel platform with a portfolio of diversified assets in the rapidly growing plant-based, natural, and clean ingredient space. The Company targets informed, health-conscious Millennial and Generation Z consumers with a focus on opportunities for expansion into high-growth consumer product categories. For more information on Simply Better Brands Corp., please visit: For more information on Simply Better Brands Corp., please visit: https://www.simplybetterbrands.com/investor-relations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Simply Better Brands Corp.
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