- Flow (FLOW) has arranged a three-year C$20.3 million senior secured loan with NFS Leasing Canada
- The loan bears interest at 14 per cent per year and has share purchase warrant coverage of 10 per cent on any amounts drawn
- The company intends to use the proceeds to repay $9.6 million in unsecured notes and to invest in the growth of the Flow brand
- Flow is one of the fastest-growing premium water companies in North America
- Flow Beverage (FLOW) is up by 42.11 per cent, trading at $0.27 per share
Flow (FLOW) has arranged a three-year C$20.3 million senior secured loan with NFS Leasing Canada.
NFS Leasing is a private North American loan and equipment finance provider with over 15 years of experience. It focuses on small and middle-market non-investment grade companies in the U.S. and Canada.
Flow has initially drawn $15.3 million and retains the ability to draw an additional $5 million prior to the one-year anniversary of the initial draw.
The loan bears interest at 14 per cent per year and has share purchase warrant coverage of 10 per cent on any amounts drawn. The warrants have a 10-year term, an exercise price of $0.50, and an accelerated expiry upon the weighted average price of subordinate voting shares reaching or surpassing $1.75 for 10 consecutive trading days.
The company intends to use the proceeds to repay $9.6 million in unsecured notes and to invest in the growth of the Flow brand, as well as for working capital and general corporate purposes.
“Securing this financing significantly enhances Flow’s cash position, which was recently bolstered by $17 million in net proceeds from the sale of the Verona packaging facility. Combined with recent contract wins in the food service sector, new activations with major global retailers, and continued strong trends in consumer preferences toward sustainable products, this facility further enables our progress toward profitable growth,” stated Nicholas Reichenbach, Flow’s Founder and CEO.
Flow is one of the fastest-growing premium water companies in North America. It offers sustainably sourced, naturally alkaline spring water in recyclable and up to 75-per-cent renewable plant-based packaging.
Flow Beverage (FLOW) is up by 42.11 per cent, trading at $0.27 per share as of 1:32 pm ET.