Yerbaé Announces New Credit Facility of US$2.5 Million from Oxford Bank to Fuel Growth and Expansion
May 16 2023 - 8:07AM
Business Wire
Yerbaé Brands Corp. (the “Company” or “Yerbaé”)
announces today that it has secured a new accounts receivable and
inventory line of credit of US$2,500,000 (the “Debt
Facility”) from Oxford Commercial Finance, a Michigan banking
corporation (“Oxford Bank”), through its Delaware subsidiary
Yerbaé LLC. The Debt Facility replaces the Company’s prior credit
agreement and is an upgrade to bank debt, and will help the Company
fuel its growth and support its ongoing operations.
“We are delighted to have secured this new Debt Facility from
Oxford Bank,” said Todd Gibson, CEO of Yerbaé. “This facility will
provide us with additional financial resources to help expand our
product line, reach more customers and continue to deliver healthy
alternative energy solutions. We see this new Debt Facility as a
testament to our growth potential.”
The Debt Facility is structured as a revolving line of credit,
which means that the Company can draw down funds as needed, and
only pay interest on the amount borrowed.
“We’re excited to have secured this new Debt Facility from
Oxford Bank, as it will allow us to accelerate our growth plans and
continue providing our customers with the best possible healthy
energy beverage solutions,” said Bill Finn, CFO of Yerbaé. “We’re
looking forward to working closely with Oxford Bank as we execute
our growth strategy and drive value for our shareholders.”
The Debt Facility will be used to fund the Company’s growth
initiatives, including investments in product innovation,
marketing, and distribution. It will also be used to support the
Company’s ongoing operations and working capital requirements. The
Debt Facility is secured by a security interest in all assets of
Yerbaé, including a first security interest in Yerbaé’s accounts
receivable and inventory.
About Yerbaé Brands Corp.
Founded in 2017 by Todd Gibson and Karrie Gibson, Yerbaé Brands
Corp., (TSXV: YERB.U) is disrupting the energy beverage marketplace
with great tasting, zero sugar, zero calorie beverages, while using
plant‐based ingredients that are designed to meet the needs of the
wellness forward consumer. Harnessing the power of nature, Yerbaé’s
celebrity ingredient, Yerba Mate, contains caffeine and has 196
active compounds, including vitamins, minerals and nutrients.
By combining Yerba Mate, a South American herb with its premium
ingredients and flavors, Yerbaé provides consumers with a no
compromise energy solution. All Yerbaé energy beverages are zero
calorie, zero sugar, non‐GMO, and gluten free.
Find us @DrinkYerbae on Instagram and Facebook.
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements relating
to the Company. Statements in this news release that are not purely
historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions
regarding the future, including, without limitation, the intended
use of proceeds therefrom. Forward-looking statements are based on
assumptions and are 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 statements. The material
assumptions supporting these forward-looking statements include,
among others, that the demand for the Company’s products will
continue to significantly grow; that the past production capacity
of the Company’s co-packing facilities can be maintained or
increased; that there will be increased production capacity through
implementation of new production facilities, new co-packers and new
technology; that there will be an increase in number of products
available for sale to retailers and consumers; that there will be
an expansion in geographical areas by national retailers carrying
the Company’s products; that the Company’s brokers and distributors
will continue to sell and prioritize the Company’s products; that
there will not be interruptions on production of the Company’s
products; that there will not be a recall of products due to
unintended contamination or other adverse events relating to the
Company’s products; and that the Company will be able to obtain
additional capital to meet the Company’s growing demand and satisfy
the capital expenditure requirements needed to increase production
and support sales activity. Actual results could differ from those
projected in any forward-looking statements due to numerous
factors. Such factors include, among others, governmental
regulations being implemented regarding the production and sale of
energy drinks; the fact that consumers may not embrace and purchase
any of the Company’s products; additional competitors selling
energy drinks reducing the Company’s sales; the fact that the
Company does not own or operate any of its production facilities
and that co-packers may not renew current agreements and/or not
satisfy increased production quotas; the potential for supply chain
interruption due to factors beyond the Company’s control; the fact
that there may be increases in costs and/or shortages of raw
materials and/or ingredients and/or fuel and/or costs of
co-packing; the fact that there may be a recall of products due to
unintended contamination; the inherent uncertainties associated
with operating as an early stage company; changes in customer
demand and the fact that consumers may not embrace energy drink
products as expected or at all; the extent to which the Company is
successful in gaining new long-term relationships with new
retailers and retaining existing relationships with retailers,
brokers, and distributors; and competition in the industry in which
the Company operates and market conditions.
These forward-looking statements are made as of the date of this
news, and the Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements, except as required by applicable law, including the
securities laws of the United States and Canada. Although the
Company believes that any beliefs, plans, expectations and
intentions contained in this presentation are reasonable, there can
be no assurance that any such beliefs, plans, expectations or
intentions will prove to be accurate. Readers should consult all of
the information set forth herein and should also refer to the risk
factors disclosure outlined in greater detail under “Risk Factors”
in the Company’s Information Circular dated November 13, 2022
available on SEDAR at www.sedar.com.
Neither 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230516005435/en/
For further information on Yerbaé:
Yerbaé Brands Corp.
Todd Gibson Chief Executive Officer +1(847) 209-0021
Investor Relations
investors@Yerbae.com +1 (480) 471-8391 https://Yerbae.com/
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