$7.5 million
growth facility plus the $2.5M
debenture unit private placement previously announced brings the
Company's total growth financing to $10
million
TORONTO, Sept. 29, 2021 /CNW/ - Newtopia Inc.
("Newtopia" or the "Company") (TSXV: NEWU) (OTCQB:
NEWUF), a tech-enabled habit change provider focused on disease
prevention, today announced it has entered into an agreement (the
"Amending Agreement") with a leading Canadian Schedule I
Bank (the "Lender") amending a commitment letter between the
Company and the Lender dated October 2,
2020 (the "Original Commitment Letter" and together
with the Amending Agreement, collectively, the "Amended
Commitment Letter"). The Amended Commitment Letter provides for
an increased revolving credit facility of $7.5 million (the "Enhanced Facility"), up
from the $5.0 million in funding
secured previously. This new credit facility, along with the
$2.5 million private placement
offering, doubles the amount of growth capital available to the
Company for working capital and general corporate purposes.
![Newtopia logo (CNW Group/Newtopia Inc.) Newtopia logo (CNW Group/Newtopia Inc.)](https://mma.prnewswire.com/media/1638987/Newtopia_Inc__Newtopia_Announces_an_Increase_of_its_Growth_Facil.jpg)
"We are very pleased to announce this increase in our growth
facility and are grateful for the ongoing support we have received
from our banking partner," said Jeff
Ruby, Founder and CEO of Newtopia. "This growing support is
a true testament to the tremendous progress we have made to date
and reflects the bank's ongoing confidence in Newtopia's ability to
successfully execute against our long-term growth strategy."
Mr. Ruby continued, "We plan to make good use of the additional
liquidity as our business returns to growth in the second-half of
the year following a 300% increase in Welcome Kits sold in the
second quarter. We will strategically leverage these funds to: (1)
hire additional Inspirators for our growing and highly engaged
participant base; (2) expand our sales and marketing teams, to
broaden our business development into additional health insurer
verticals and, importantly; (3) continue to advance our
one-of-a-kind habit change technology to improve efficiencies and
drive increased margins. This expanded facility, along with the
overall growth of our business, will enable us to continue
delivering meaningful cost savings and ROI to our health insurer
customers, while working towards preventing, reversing and slowing
the progression of physical and mental health risks linked to
chronic disease."
The terms of the new Enhanced Facility are materially unchanged
from the Original Commitment Letter. Principal terms of the
Original Commitment Letter are set out in the Company's previous
press release dated October 5, 2020
and available under Newtopia's profile on SEDAR at
www.sedar.com.
The Enhanced Facility is subject to approval of a 50% guarantee
by Export Development Canada ("EDC") through the Export
Guarantee Program ("EGP") which the Company anticipates in
the coming weeks. The facility advanced pursuant to the Original
Commitment Letter was subject to a 50% guarantee previously
approved by EDC through the EGP. The Enhanced Facility will
continue to be secured by a first ranking security interest over
all of the present and future property of Newtopia.
About Newtopia
Newtopia is a tech-enabled habit change provider focused on
disease prevention and reducing the cost of care for health
insurers. As a provider of whole person care, we prevent, reverse,
and slow the progression of chronic disease while enriching mental
health, resilience and overall human performance. Newtopia's
programs leverage genetic, social, and behavioral insights to
create individualized prevention programs with a focus on type 2
diabetes, heart disease, stroke and weight. With a person-centered
approach that combines virtual care, digital tools, connected
devices and actionable data science, Newtopia delivers sustainable
clinical and financial outcomes. Newtopia serves some of the
largest nationwide employers and health plans and is currently
listed on the Toronto Stock Exchange (TSXV: NEWU) (OTCQB: NEWUF).
To learn more, visit newtopia.com, Facebook, LinkedIn or
Twitter.
Forward Looking Statements
This news release contains forward-looking information and
forward-looking statements, within the meaning of applicable
Canadian securities legislation, and forward looking statements,
within the meaning of applicable United
States securities legislation (collectively,
"forward-looking statements"), which reflects management's
expectations regarding Newtopia's future growth, results from
operations (including, without limitation, future production and
capital expenditures), performance (both operational and financial)
and business prospects and opportunities. Wherever possible, words
such as "predicts", "projects", "targets", "plans", "expects",
"does not expect", "budget", "scheduled", "estimates", "forecasts",
"anticipate" or "does not anticipate", "believe", "intend" and
similar expressions or statements that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative or grammatical variation thereof or
other variations thereof, or comparable terminology have been used
to identify forward-looking statements. All statements other than
statements of historical fact may be forward-looking information.
Such statements reflect Newtopia's current views and intentions
with respect to future events, based on information available to
Newtopia, and are subject to certain risks, uncertainties, and
assumptions. Material factors or assumptions were applied in
providing forward-looking information. While forward-looking
statements are based on data, assumptions and analyses that
Newtopia believes are reasonable under the circumstances, whether
actual results, performance or developments will meet Newtopia's
expectations and predictions depends on a number of risks and
uncertainties that could cause the actual results, performance and
financial condition of Newtopia to differ materially from its
expectations. These forward-looking statements include, among other
things, the use of proceeds from the Enhanced Facility, approval of
the 50% guarantee by EDC through the EGP, statements relating to
Newtopia's business plans, growth and outlook. Forward-looking
statements are not a guarantee and are based on a number of
estimates and assumptions management believes to be relevant and
reasonable, whether actual results, performance or developments
will meet Newtopia's expectations and predictions depends on a
number of risks and uncertainties that could cause the actual
results, performance and financial condition of Newtopia to differ
materially from its expectations. Certain of the "risk factors"
that could cause actual results to differ materially from
Newtopia's forward-looking statements in this press release
include, without limitation: the termination of contracts by
clients, risks related to COVID-19 including various
recommendations, orders and measures of governmental authorities
to try to limit the pandemic, including travel restrictions, border
closures, non-essential business closures, quarantines,
self-isolations, shelters-in-place and social distancing,
disruptions to markets, economic activity, financing, supply
chains and sales channels, and a deterioration of general
economic conditions including a possible national or global
recession; and other general economic, market and business
conditions and factors, including the risk factors discussed or
referred to in Newtopia's disclosure documents, filed with the
securities regulatory authorities in certain provinces of
Canada and available at
www.sedar.com including Newtopia's final long form prospectus dated
March 30, 2020.
Should any factor affect Newtopia's in an unexpected manner, or
should assumptions underlying the forward- looking information
prove incorrect, the actual results or events may differ materially
from the results or events predicted. Any such forward-looking
information is expressly qualified in its entirety by this
cautionary statement. Moreover, Newtopia does not assume
responsibility for the accuracy or completeness of such
forward-looking information. The forward-looking information
included in this press release is made as of the date of this press
release, and Newtopia undertakes no obligation to publicly update
or revise any forward-looking information, other than as required
by applicable law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Newtopia Inc.