Business
Zedcor Inc. Announces Expansion and Extension of Credit Facility
Calgary, Alberta--(Newsfile Corp. - December 4, 2020) - Zedcor Inc. (TSXV: ZDC) (the " Company...
About this update from Zedcor Inc
[{"type":"text","content":"Zedcor Inc. Announces Expansion and Extension of Credit FacilityCalgary, Alberta--(Newsfile Corp. - December 4, 2020) - Zedcor Inc. (TSXV: ZDC) (the \"Company\" or \"Zedcor\") is pleased to announce that the Company has entered into an amended and restated loan and security agreement (the \"Agreement\") with Maynbridge Capital Inc. (the \"Lender\") in the principal amount of $17.3 million. The Agreement consolidates the Company's existing term loans into a single loan facility that will be amortized over five years and is fully committed until January 1, 2023, with the option to renew for an additional 12 months subject to the Lender's approval. The Agreement provides for $1.0 million of additional growth capital immediately to expand Zedcor's Security and Surveillance business which is seeing growing customer demand, along with an uncommitted $2.0 million accordion facility that could be made available to the Company, subject to the Lender's credit approval.The Agreement is secured with a first charge over the Company's assets, bears interest at 12.75% per annum and has an extension fee of 2% per annum, $377,238 of which will be capitalized to the loan and $300,000 of which has been paid with the issuance of 2,000,000 common shares of Zedcor Inc. at a deemed priced of $0.15 per share. The Agreement will be serviced by equal, monthly blended principal and interest payments and does not require quantitative financial covenants. In addition, the Lender has been issued an additional 730,562 share purchase warrants with an exercise price of $0.12 per share and the exercise price of the 4,014,343 existing warrants already issued to the Lender will be amended to $0.12 per share. The expiry date of all outstanding warrants issued to the Lender will be November 25, 2024. All of the securities issued are subject to a four month hold period from the date of issue. At the end of the Agreement's initial term, Zedcor is projecting to have approximately $13.0 million of senior debt under its loan with the Lender, assuming the $2.0 million accordion facility has been fully drawn. This would represent a reduction of approximately 33% in the outstanding debt under the Agreement with the Lender. Based on current forecasts, estimated utilization of the Company's fleet of security towers, along with the additional assets purchased as part of the fi...