Viridis Energy Secures $3.25 Million Term Loan and $250,000 Credit Line from Royal Bank of Canada
05 March 2014 - 12:30AM
Access Wire
Vancouver, BC - / ACCESSWIRE / March 4, 2014 /
Viridis Energy Inc. ("Viridis" or the
"Company") (TSXV: VRD), a "Cleantech" manufacturer and
distributor of renewable energy providing waste biomass fuel to
global residential and industrial markets, announced today that its
wholly owned subsidiary, Okanagan Pellet Company Inc. ("OPC"), has
entered into a loan facilities agreement providing for
a $3.25 million secured loan (the "Loan") with the Royal Bank of
Canada ("RBC"). The loan bears interest at the annual rate of Royal
Bank's prime rate plus 3% (currently equates to
approximately 6%), payable monthly over 48 months.
Proceeds from the Loan will be primarily used to repay the
Company's debt held by Cornwall Investments LLC, which bears
interest costs of 9% per year (prime plus 6%). In addition, RBC
will provide the Company with a $250,000 line of credit at Royal
Bank's prime rate plus 3% interest per annum, for general working
capital purposes.
The Loan is
secured by a first ranking security interest in all present and
after acquired personal property of Okanagan Pellet
Company Inc. and equipment financed through the Loan
and has no prepayment or repayment penalties. The Loan
requires that OPC maintain a debt service coverage (the amount of
cash flow available to meet annual interest payments on the debt)
of not less than 1.25 to 1, calculated over the last twelve months
and a ratio of total liabilities to tangible net worth of not more
than 2 to 1, calculated quarterly. No securities of the Company are
or will be issued in connection with the Loan.
Robert Aaron, Chairman of the Board
of Viridis Energy, commented, "Viridis received the critical
funding from Cornwall in its early development stage. The Company
has now entered an accelerated growth phase as its second plant,
Scotia Atlantic Biomass, has begun shipping product, and its
Merchants group has begun generating revenue. We intend to extend
our commitment to Viridis by exercising warrants, as OPC repays the
Cornwall loan. We will exercise warrants to purchase 15 million
common shares, at $0.15, which will add $2.25 million to Viridis'
working capital, and thus strengthen its position in the market as
an emerging leader in the global wood pellet market."
Viridis Investor
Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
212-681-4108
Yvonne@grannusfinancial.com
Company
Contact:
Michele Rebiere
Chief Financial Officer
Viridis Energy Inc
905-847-5226
investorinfo@viridisenergy.ca
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About Viridis
Energy Inc.
Viridis Energy Inc. (TSXV:
VRD) is a publicly traded, "Cleantech" alternative energy company
specializing in the agricultural and wood waste biomass. Located in
Vancouver, B.C., Viridis Energy operates Cypress Pacific
Marketing, Okanagan Pellet Company and Scotia Atlantic
Biomass, thus providing the Company with vertical integration for
distribution and manufacturing as well as coast to coast national
presence. For more information on Viridis Energy Inc. please refer
to the Company's website at www.viridisenergy.ca.
About Royal Bank
of Canada
Royal Bank of Canada is Canada's
largest bank, and one of the largest banks in the world, based on
market capitalization. We are one of North America's leading
diversified financial services companies, and provide personal and
commercial banking, wealth management services, insurance, investor
services and capital markets products and services on a global
basis. We employ approximately 79,000 full- and part-time employees
who serve more than 16 million personal, business, public sector
and institutional clients through offices in Canada, the U.S. and
42 other countries. For more information, please visit rbc.com.
Forward-looking
Statements
Certain statements in this release are forward-looking statements,
which reflect the expectations of management regarding the
Company's future operations. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future. Such statements are subject to risks and uncertainties that
may cause actual results, performance or developments to differ
materially from those contained in the statements. No assurance can
be given that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a continued
downturn in general economic conditions in North America and
internationally, (2) the inherent uncertainties associated with the
demand for biofuels, (3) the risk that the Company does not execute
its business plan, (4) inability to finance operations and growth
(5) inability to finance the start-up operations in Nova Scotia in
a timely manner (6) inability to retain key management and
employees, (7) an increase in the number of competitors with larger
resources, and (8) other factors beyond the Company's control.
These forward-looking statements are made as of the date of this
news release and the Company intends to update such forward looking
information in the Company's MD&A in the event that actual
results differ materially from such forward-looking statements
contained herein. Additional information about these and other
assumptions, risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's MD&A filed with
Canadian securities regulators.
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.
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