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.
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.
About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2024. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.
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.
Cautionary Statement Regarding Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") as such terms are defined under applicable Canadian securities laws and are based on plans, expectations and estimates of management at the date of this news release. Forward-looking statements include, without limitation, the availability of funds under the credit facility, the approval of the TSX Venture Exchange, the anticipated benefits of the financings and the growth in distribution for the TRUBAR plant-based protein bar, anticipated use of proceeds from the credit facility and Promissory Notes, and statements with respect to the future business and operations of the Company. The words "engaged in", "evaluating", "continuing to", "is reviewing", "potential", "intend", "anticipates", "believes", "aims", "plans", "expects" or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can", or negative versions thereof, "occur", "continue" or "be achieved", and other similar expressions, identify forward-looking statements. Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are outside of the Company's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward-looking statements contained in this news release are based on various assumptions, including, but not limited to, the following: the ability of the Company to achieve its growth and revenue strategies; the demand for the Company's products; that the Company's financial condition and development plans do not change as a result of unforeseen events; the regulatory climate in which the Company operates; and the Company's ability to execute on its business plans. Known and unknown risk factors, many of which are beyond the control of the Company, could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to: the impact of foreign exchange rates; pricing pressures; general adverse economic, market and business conditions and those factors which are discussed in the Company's management discussion and analysis for the year ended December 31, 2023, which is available under the Company's SEDAR+ profile at www.sedarplus.com. The risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this news release are given as of the date hereof and qualified by these cautionary statements.
SOURCE Simply Better Brands Corp.
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