Goodfood Market closed a $13.5 million secured financing with Desjardins Capital Markets. The proceeds will be used to fund expansion capital expenditures, invest in automation, refinance the company’s $2 million long-term debt and for general corporate purposes.

The debt financing consists of a secured three-year term loan of $10 million, a $2.5 million revolving credit facility and $1 million in other short-term financing.

The term loan and the revolving credit facility bear variable interest at bankers’ acceptance rate plus 2.50%. The term loan will be repayable in quarterly instalments of $125,000, beginning on December 4, 2020, with a bullet repayment of the balance at the end of the three-year term.

“This new financing significantly enhances our financial capacity and flexibility without diluting shareholders, as we aim to be the lowest cost producer in our industry in order to create the most value for our customers and investors. It will allow us to continue to pursue our aggressive growth strategy, further invest in automation to generate improved efficiencies and complete the recently announced expansion of our Eastern Canada facility which will increase our national sales capacity to $500 million,” said Jonathan Ferrari, CEO of Goodfood.

Headquartered in Montréal, Goodfood is a Canadian home meal solutions company which prepares a personalized box of fresh ingredients and delivers it to the subscriber’s doorstep with easy step-by-step instructions.