Zedcor Energy Inc. Announces Financing Extension
Calgary, Alberta--(Newsfile Corp. - January 1, 2020) - Zedcor Energy Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that effective December 31, 2019, the Company, as borrower, has entered into an amended and restated loan and security agreement (the "Agreement") with Maynbridge Capital Inc. (the "Lender") to extend the maturity date of the agreement to March 25, 2021 in the principal amount of $12,107,975. The current loan amount reflects a repayment of debt since March 25, 2019 of $2,206,275 funded through the sale of under-utilized assets and principal payments. The renewed Agreement bears interest at 10.00% per annum, subject to conditions pursuant to the renewed Agreement. The interest rate of 10.00% per annum may increase to 12.75% per annum if all conditions precedent under a potential one-time advance up to a maximum amount of $6,550,000 made available by the Lender to the Company by way of a non-revolving term loan (the "Additional Facility") are not satisfied on or before February 1, 2020, or such other date as agreed to between the Lender and the Company. The renewed Agreement has an extension fee of 3%, and will be serviced by fifteen months of interest only payments.
Todd Ziniuk, President and CEO of the Company, stated "The extension of our loan agreement announced today allows us to focus on the continued growth of our business, specifically the security and surveillance division. In conjunction, the Company remains committed to reducing debt through positive cash flows."
Forward-Looking Statements and Information
Certain statements included or incorporated by reference in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information may contain statements with the words "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", "or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, Zedcor's repayment of existing credit facilities and access to the Additional Facility and fulfillment of all conditions precedent. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements or information because the Company can give no assurance that such statements or information will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results will differ materially from those anticipated in such statements or information. For this purpose, any statements or information contained herein that are not statements or information of historical fact may be deemed to be forward-looking statements or information and readers should not place undue reliance on such forward-looking statements or information. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless the Company is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.
About Zedcor Energy Inc.
Zedcor Energy Inc. is a Canadian public corporation and parent company to Zedcor Energy Services Corp. ("Zedcor Corp."). Zedcor Corp. is engaged in the rental of surface equipment and accommodations, and providing security and surveillance services in Western Canada. The Company trades on the TSX Venture Exchange under the symbol "ZDC".
For further information contact:Kim Cotter
Chief Financial Officer
P: (403) 930 - 5435
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