Business
Pool Safe Announces Transformative Revolving Credit Facility
Vancouver, British Columbia--(Newsfile Corp. - April 2, 2019) - Pool Safe Inc. (TSXV: POOL) ("...
About this update from Pool Safe, Inc.
[{"type":"text","content":"Pool Safe Announces Transformative Revolving Credit FacilityVancouver, British Columbia--(Newsfile Corp. - April 2, 2019) - Pool Safe Inc. (TSXV: POOL) (\"Pool Safe\" or the \"Company\") is pleased to announce it has completed a credit agreement (\"Credit Agreement\") to enable the company to access its working capital needs in order to fulfill growing demand for its PoolSafes. No longer constrained by access to working capital, management will be able to actively move forward to conclude numerous revenue sharing (\"Revenue Sharing Agreements\") opportunities with hotels, resorts and waterparks around the world. The agreement with Intrexa Ltd. (the \"Lender\") enables Pool Safe to establish secured revolving credit facilities of $1,000,000 (the \"Facilities\") to be advanced in installments. David Berger, Chief Executive Officer stated, \"Over the past few years we have installed our product in 17 different resort and waterpark chains that represent more than 30,000 facilities. This revolving credit facility will allow us to deliver on our growth expectations in a manner that is very shareholder friendly and virtually non-dilutive. We are grateful for this transformative support of Intrexa which recognizes the value of the business we have built and are continuing to expand.\"The Lender has also agreed to allow the Company to use the proceeds of the Facilities to recover the manufacturing, delivery and installation costs the Company expended under prior and future Revenue Sharing Agreements. The Facilities are due March 31, 2022, bear interest at a rate of 10% per annum, and are secured by first ranking security over the PoolSafe units that the Company manufactures using the proceeds of the Facilities and the accounts receivable derived from such PoolSafe units. In connection with the Facilities, the Company may grant up to 3,500,000 bonus warrants (\"Bonus Warrants\") to the Lender. Each Bonus Warrant will be exercisable into one common share of the Company (a \"Bonus Share\") at an exercise price equal to the market price of the Company's common shares plus $0.01 (the \"Exercise Price\"), will have a term that expires on maturity of the Facilities, and will be non-transferable. The number of Bonus Warrants issued to the Lender will be determined by dividing the amount of any advance under the Facilities by the then-current Exe...