Blackline Safety Announces Credit Facility Expansion with ATB Financial to $25 Million
October 31 2023 - 6:17AM
Business Wire
Agreement strengthens liquidity by $10 million
Blackline Safety Corp. (the "Company") (TSX: BLN), a global
leader in connected safety, today announced the expansion of its
Annual Recurring Revenue (“ARR”) based credit facility to $25
million (previously $15 million), effective October 31, 2023, as
well as the extension of the facility for two years from closing.
Additionally, the credit facility will maintain the $5 million
accordion feature to increase the size subject to ATB approval. The
increase in the credit facility also reflects revised covenants
which provide the Company with the flexibility and liquidity to
continue its track record of strong growth and bringing innovative
products and features that create value for its industrial
customers around the world.
“We are delighted to be continuing our partnership with ATB
Financial for the next two years, and we are pleased with the $10
million additional capital that this facility further solidifies
the liquidity position of the Company,” said Shane Grennan, Chief
Financial Officer of Blackline Safety. “Their increased support
demonstrates confidence in our outlook and recognition of the
significant improvements across our core financial metrics over the
last year— increasing Total Revenue, Gross Margin, ARR, Net Dollar
Retention (“NDR”) and bringing multiple new feature sets to our G6
and G7 EXO product lines, all while reducing operating costs.”
“ATB is pleased to once again partner with Blackline Safety, a
global company based in Alberta that has consistently shown
dedication to the advancement of safety technology. We look forward
to seeing the continued growth and bright future of this Company,”
said Darren Eurich, CEO ATB Capital Markets & Senior Vice
President, Business, ATB Financial.
“As we enter our fiscal 2024, we see tailwinds across our
geographic segments as more industrial companies are adopting our
connected gas detection as part of their digital transformation
strategy,” said Cody Slater, Chief Executive Officer and Chair of
Blackline Safety. “ATB’s approach in expanding the facility at this
stage shows that we chose the right banking partner for the
future.”
Building on its 26th consecutive quarter of revenue growth, the
increased facility is supported by the continued expansion of
Blackline’s ARR, which was $47 million as of July 31, 2023, up 43%
compared to the prior year’s quarter. The operating facility
incorporates financial covenants, including a liquidity to cash
burn ratio. Pricing and other terms remain consistent with the
current facility.
About Blackline Safety
Blackline Safety is a technology leader driving innovation in
the industrial workforce through IoT. With connected safety devices
and predictive analytics, Blackline enables companies to drive
towards zero safety incidents and improved operational performance.
Blackline provides wearable devices, personal and area gas
monitoring, cloud-connected software, and data analytics to meet
demanding safety challenges and enhance overall productivity for
organizations with coverage in more than 100 countries. Armed with
cellular and satellite connectivity, Blackline provides a lifeline
to tens of thousands of people, having reported over 185 billion
datapoints and initiated over seven million emergency alerts. For
more information, visit BlacklineSafety.com and connect with us on
Facebook, Twitter, LinkedIn and Instagram.
Note Regarding Forward-Looking Statements
This press release contains certain forward–looking information
and statements within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue",
"estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify
forward-looking information or statements. In particular, but
without limiting the forgoing, this press release contains
statements concerning the terms of the amended credit facility, the
expected use of the credit facility and the potential benefits
thereof. Although Blackline believes that the expectations
reflected in these forward-looking statements are reasonable, undue
reliance should not be placed on them because Blackline can give no
assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. The amounts
that may be available for borrowing under the amended credit
facility may change from time to time, and, as the Company is
subject to the amended credit facility, the Company will be subject
to the terms and conditions thereof, and any default thereunder may
cause an acceleration of repayment of any amounts borrowed
thereunder and if the Company was unable to repay amounts owing
thereunder, the lender under the amended credit facility could
proceed to foreclose or otherwise realize upon the collateral
granted to them to secure such indebtedness. The forward looking
statements contained in this press release are made as of the date
hereof and Blackline undertakes no obligations to update publicly
or revise any forward looking statements or information, whether as
a result of new information, future events or otherwise, unless so
required by applicable securities laws.
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INVESTOR/ANALYST CONTACT Shane Grennan, CPA, CA, Chief
Financial Officer investors@blacklinesafety.com Telephone:
+1 403 630 8400
MEDIA CONTACT Christine Gillies, Chief Product &
Marketing Officer cgillies@blacklinesafety.com Telephone: +1
403 629 9434
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