Goodfood Announces $21 Million Expansion of its Syndicated Bank Financing to Further Increase its Financial Flexibility
February 16 2021 - 7:00AM
Goodfood Market Corp. (“Goodfood'' or “the Company”), a leading
online grocery company in Canada, announced the expansion of its
credit financing by $21 million for total credit facilities of $67
million, including the upsize of its revolving credit facility by
$15 million to reach $42.5 million, and $6 million in additional
short-term financing. The financing transaction sees the Canadian
Imperial Bank of Commerce join Desjardins Capital Markets and
Investissement Québec as part of the syndicate.
“We are thrilled to have gained additional
financial flexibility to support our growth and strategy. As we
look to increase selection and delivery flexibility to our
subscribers, Goodfood is pleased to count on such strong and
reputable financial partners,” said Jonathan Ferrari, Chief
Executive Officer of Goodfood. “We will soon have access to over
$200 million of liquidity, providing us with the balance sheet and
the platform to continue executing our strategic plan. The grocery
industry continues to shift online at an accelerating pace, and we
are ideally positioned to gain market share and penetrate an
increasing number of households from coast to coast,” concluded Mr.
Ferrari.
ABOUT GOODFOOD
Goodfood (TSX:FOOD) is a leading online grocery
company in Canada, delivering fresh meal solutions and grocery
items that make it easy for members from across Canada to enjoy
delicious meals at home every day. Goodfood’s vision is to be in
every kitchen every day by enabling members to complete their
grocery shopping and meal planning in minutes. Goodfood members
have access to a unique selection of online products as well as
exclusive pricing made possible by its world class
direct-to-consumer infrastructure and technology that eliminate
food waste and costly retail overhead. The Company’s main
production facility and administrative offices are based in
Montreal, Québec, with five additional production facilities
located in the provinces of Québec, Ontario, Alberta, and British
Columbia. A seventh production facility located in the province of
Ontario is currently under construction and is scheduled to
commence operations in 2021. As at November 30, 2020, Goodfood had
306,000 active subscribers. www.makegoodfood.ca.
For further information:
Investors and
Media |
|
Philippe AdamChief Financial
Officer(855) 515-5191IR@makegoodfood.ca |
Roslane Aouameur Senior Director,
FP&A and Investor Relations(855)
515-5191IR@makegoodfood.ca |
FORWARD-LOOKING INFORMATION
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward-looking information includes, but is not
limited to, information with respect to our objectives and the
strategies to achieve these objectives, as well as information with
respect to our beliefs, plans, expectations, anticipations,
estimates and intentions. This forward-looking information is
identified by the use of terms and phrases such as “may”, “would”,
“should”, “could”, “expect”, “intend”, “estimate”, “anticipate”,
“plan”, “foresee”, “believe”, and “continue”, as well as the
negative of these terms and similar terminology, including
references to assumptions, although not all forward-looking
information contains these terms and phrases. Forward-looking
information is provided for the purposes of assisting the reader in
understanding the Company and its business, operations, prospects
and risks at a point in time in the context of historical and
possible future developments and therefore the reader is cautioned
that such information may not be appropriate for other
purposes.
Forward-looking information is based upon a
number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those that are
disclosed in, or implied by, such forward-looking information.
These risks and uncertainties include, but are not limited to, the
following risk factors which are discussed in greater detail under
“Risk Factors” in the Company’s Annual Information Form for the
year ended August 31, 2020 available on SEDAR at www.sedar.com:
limited operating history, negative operating cash flow, food
industry, quality control and health concerns, regulatory
compliance, regulation of the industry, public safety issues,
product recalls, damage to Goodfood’s reputation, transportation
disruptions, product liability, ownership and protection of
intellectual property, evolving industry, unionization activities,
reliance on management, factors which may prevent realization of
growth targets, competition, availability and quality of raw
materials, environmental and employee health and safety
regulations, online security breaches and disruption, reliance on
data centers, open source license compliance, future capital
requirements, operating risk and insurance coverage, management of
growth, limited number of products, conflicts of interest,
litigation, catastrophic events, risks associated with payments
from customers and third parties, being accused of infringing
intellectual property rights of others and, climate change and
environmental risks. Although the forward-looking information
contained herein is based upon what we believe are reasonable
assumptions, readers are cautioned against placing undue reliance
on this information since actual results may vary from the
forward-looking information. Certain assumptions were made in
preparing the forward-looking information concerning the
availability of capital resources, business performance, market
conditions, and customer demand. In addition, information and
expectations set forth herein are subject to and could change
materially in relation to developments regarding the COVID-19
pandemic and its impact on product demand, labour mobility, supply
chain continuity and other elements beyond our control.
Consequently, all of the forward-looking information contained
herein is qualified by the foregoing cautionary statements, and
there can be no guarantee that the results or developments that we
anticipate will be realized or, even if substantially realized,
that they will have the expected consequences or effects on our
business, financial condition or results of operation. Unless
otherwise noted or the context otherwise indicates, the
forward-looking information contained herein is provided as of the
date hereof, and we do not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
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