CALGARY,
AB, June 29, 2023 /CNW/ - Nanalysis
Scientific Corp. ("the Company" or "Nanalysis", TSXV:
NSCI, OTCQX: NSCIF, FRA: 1N1), , a leader in portable NMR machines
and MRI technology for industrial and research applications, is
pleased to announce that it has entered into a commitment letter
with ATB Financial (the "Credit Agreement"). Under the Credit
Agreement, ATB Financial has made available to the Company a senior
secured term loan in the principal amount of up to $10 million and a senior secured revolving
operating line in the principal amount of up to $5 million (the "Credit Facilities"), for total
borrowings of up to $15
million. Furthermore, with ATB Financial's approval,
the Company could obtain up to an additional $5 million incremental term loan. The new
Credit Facilities are expected to provide improved financial
flexibility to help the Company manage its operations,
implementation of contracts, and future growth.
The term loan amortizes over four years beginning in January
2024. The revolving operating line is calculated and
available based on the accounts receivable and inventory of the
Company, in a largely consistent manner with the Company's current
operating facility. The Credit Facilities will be secured by,
inter alia, a general security agreement over the property
of Nanalysis and certain of its subsidiaries. These new
Credit Facilities will replace the Company's current operating
facility with another lender.
In connection with the Credit Agreement, the Company has granted
500,000 common share purchase warrants to ATB Financial (the
"Warrants"). Each Warrant entitles the holder thereof to acquire 1
common share at an exercise price of $0.80. The Warrants expire two years from the
closing date of the Credit Agreement. The issuance of the Warrants
has been conditionally approved by the TSX Venture Exchange.
"We are very happy to welcome ATB Financial as our
banking partner and senior lender. We believe the credit facilities
ATB Financial is providing are much better suited for where the
Company is positioned today and will enable us to build value for
our investors in the future," said Sean
Krakiwsky, Founder and CEO of Nanalysis. "This
transaction strengthens our balance sheet and provides us with a
strong capital structure to execute on our contracts and pursue our
future growth initiatives."
About Nanalysis Scientific Corp.
(TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1)
Nanalysis' business is what we term "MRI and NMR for industry".
The Company develops and manufactures portable Nuclear Magnetic
Resonance (NMR) spectrometers or analyzers for laboratory and
industrial markets. The NMReady-60™ was the first full-feature
portable NMR spectrometer in a single compact enclosure requiring
no liquid helium or any other cryogens. The Company has followed-up
that initial offering with new products and continues to have a
strong innovation pipeline. In 2020 Nanalysis announced the launch
of its 100MHz device, the most powerful and most advanced compact
NMR device ever brought to market.
Nanalysis' devices are used in many industries (oil and gas,
chemical, mining, pharma, biotech, flavor and fragrances,
agrochemicals, law enforcement, and more) as well as numerous
government and university research labs around the world. The
Company continues to exploit new global market opportunities
independently and with partners.
In 2022 the Company acquired K'(Prime) Technologies Inc.
("K'Prime"), a North American sales and service company which
provides sales services for scientific instrumentation for pharma,
food, chemical and oil & gas customers, as well as imaging
systems for security applications. K'Prime's service
organization provides airport and commercial security installation
and maintenance solutions across North
America.
Additionally in 2022, the Company acquired a 43% ownership in
Quad Systems AG ("Quad Systems"), a Zurich-based Nuclear
Magnetic Resonance (NMR) company focused on high-field NMR for
pharmaceutical and other vertical markets.
Notice regarding Forward Looking
Statements and Legal Disclaimer
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Company is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/nanalysis-enters-into-new-credit-facility-with-atb-financial-301867637.html
SOURCE Nanalysis Scientific Corp.