Vancouver, British Columbia--(Newsfile Corp. - December 23, 2024) - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or "Company"), a leading omnichannel building material retailer is pleased to announce that the Company and BuildDirect Operations Limited ("BuildDirect Operations"), a wholly-owned subsidiary of the Company, have entered into revolving demand credit facility agreements dated December 20, 2024 (the "Credit Agreements") with the Royal Bank of Canada ("RBC").
Pursuant to the Credit Agreements, RBC will make available to the Company and BuildDirect Operations revolving demand credit facilities with an aggregate borrowing limit of up to CAD $9.526 million (the "RBC Loans"). The RBC Loans are payable upon demand and the aggregate borrowing limit thereunder are subject to certain financial covenants calculated on a consolidated basis for the Company and its operating subsidiaries.
The RBC Loans will be secured against the assets of the Company and its operating subsidiaries and the Company and BuildDirect Operations intend to use the proceeds from the RBC Loans for general working capital purposes and to restructure certain long- term debt.
The interest rate, depending on the currency, on the RBC Loans is based on RBC Prime Rate plus a percentage negotiated between the parties to the RBC Loans.
The RBC Loans are correspondingly being provided by RBC with support from Export Development Canada's Trade Expansion Lending Program.
The RBC Loans are not convertible into securities of the Company and there are no securities being issued to RBC as a bonus in relation to the RBC Loans.
"These credit facilities are a key milestone in BuildDirect's growth strategy," said Shawn Wilson, CEO of BuildDirect. "These facilities will provide the flexibility to expand our working capital while strategically refinancing our secured debt. The backing of a Tier-1 financial institution like RBC, combined with support from EDC-backed programs, underscores strong confidence in our business model and aim to support our ability to continue to pursue sustained growth and value for our stakeholders."
About BuildDirect
BuildDirect (TSXV: BILD) is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect's growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry. For more information, visit www.BuildDirect.com.
Forward-Looking Information:
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.
Forward-looking statements in this press release may include statements relating the Company and/or BuildDirect Operations Limited's ability to repay the RBC Loans, the ability of the RBC Loans to provide the flexibility to expand the Company's working capital while strategically refinancing its secured debt, and the RBC Loans supporting the Company's ability to continue to pursue sustained growth and value for our stakeholders.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations and changes in general economic, business and political conditions. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements.
Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. There may be other risks, uncertainties and factors that cause results not to be as anticipated, estimated or intended and such changes could be material. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by 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.
For further information:
Shawn Wilson, CEO,
1.778.382.7748
BuildDirect Investor Relations
ir@builddirect.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235029
SOURCE: BuildDirect.com Technologies, Inc.
