Lendified Announces Credit Facility of up to $10,000,000 and Closing on the First Advance Under the Credit Facility
Toronto, Ontario--(Newsfile Corp. - August 17, 2021) - As previously announced on April 5, 2021 and May 14, 2021, Lendified Holdings Inc. (TSXV: LHI) (formerly, Hampton Bay Capital Inc.) (the "Company" or "Lendified") is pleased to announce that the Company's wholly-owned subsidiary, incorporated as a special purpose vehicle for the purpose of funding new loans under the Credit Facility (the "SPV"), has entered into a definitive two year credit agreement (the "Credit Agreement") with Windsor Private Capital Limited Partnership and Evergreen Gap Debt GP Inc. (together, the "Lenders") for a non-revolving, secured term loan in the aggregate amount of up to $10,000,000.00 (the "Credit Facility"). The Credit Facility has an effective date as of July 30, 2021, subject to the Company satisfying two undertakings in favour of the Lenders relating to updating the Company's credit risk policy and entering into an agency agreement between the SPV and a wholly-owned subsidiary of the Company, as origination agent. Notwithstanding the undertakings the Lenders have agreed to and closed on the first advance of $500,000 to the SPV under the Credit Facility, which will be used to fund new loans to the Company's customers in the ordinary course of business.
In connection with the Credit Facility and pursuant to the Credit Agreement, Lendified's wholly-owned subsidiaries, as borrower and guarantor, have entered into general security agreements and a guarantee in favour of the Lenders on terms and conditions customary in such transactions. The Credit Facility shall be used by Lendified for the purpose of funding new loans to small and medium-sized businesses in Canada in the ordinary course of its business.
ABOUT LENDIFIED HOLDINGS INC.
Lendified, a company located in Ontario, Canada, is a Canadian FinTech company operating a lending platform which provides working capital loans to small businesses across Canada through a wholly-owned subsidiary.
For further information regarding Lendified, please contact:
John Gillberry, Chief Executive Officer and Director
Neither the 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.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including, but not limited to, whether the proceeds from the Credit Facility will be sufficient for the Company's purposes; the timing of any future advances under the Credit Facility, if any; the Company's ability to repay the Credit Facility pursuant to its terms; and whether the effects of the COVID-19 pandemic will be even more severe than it has been to date, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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