BC Craft Supply secured an interim financing facility from Avro Capital which was approved by the Supreme Court of British Columbia pursuant to the terms of a debtor-in-possession financing term sheet between the company and Avro.
The interim facility is in the maximum principal amount of $415,000, which will be comprised of an initial advance of $215,000, with subsequent advances from time to time as agreed upon between BC Craft Supply and Avro in an amount not exceeding $200,000. The interim facility will finance the continuation of BC Craft Supply’s operations and allow the company to meet its obligations in the normal course of business as they become due. In addition, the interim facility will assist the company in funding certain growth initiatives that the company’s management team believes will generate significant revenues through increased sales of products by its distribution partners and other possible channels.
The interim facility is secured by a priority, court-ordered charge in the maximum principal amount of $415,000, plus interest of 11.5% per annum, costs, fees and disbursements, ranking in priority to all other encumbrances on the company’s assets, properties and undertakings, other than an administrative charge. The interim facility will mature and be fully repayable on the date that is six months from the date of the first advance, which may be extended if Avro agrees to such an extension.
“We believe we have captured the most favorable financing arrangement presently available to the company that will sufficiently carry us through to the next steps of restructuring the company and continuing as a viable business moving forward,” Matt Watters, CEO of BC Craft Supply, said.
