D-BOX Technologies entered into amending agreements relating to its loan facilities with the National Bank of Canada, via its technology and innovation banking group, and the Business Development Bank of Canada, providing for, among other things:
- An upsize of its operating line of credit with NBC from $4 million CAD to $5.5 million CAD. This is a reduction of the applicable interest rates for CAD and USD loans by 75 basis points from prime plus 3.25% to prime plus 2.50% and certain changes to the corporation’s financial covenants.
- An extension of the maturity of the $1 million CAD term loan entered into in September 2021 with NBC and guaranteed by the BDC as part of the Highly Affected Sectors Credit Availability Program, from Sept. 7, 2024 to Sept. 30, 2025.
- An extension of the maturity of the $2 million CAD term loan entered into in July 2020 with the BDC, from June 2026 to June 2028.
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The upsized line of credit will be secured by first-ranking hypothec and security interests on all movable/personal property of the corporation and its U.S. subsidiary and a guarantee from Export Development Canada. A portion of the available proceeds from upsizing the line of credit was used to fully repay the $1 million CAD term loan with NBC that was scheduled to mature in February 2024, which had a balance of approximately $870,000 CAD.
“These favorable amendments are a testament to D-BOX’s solid financial performance in the recent quarters and the confidence shown by our valued financial partners,” David Montpetit, chief financial officer of D-BOX, said. “A special thank you to the Economic Development Agency of Canada for helping us secure the amendments to our line of credit. The upsizing of our line of credit and the extended maturities on our term loans provide greater flexibility in our treasury management while reducing our financial cost. These changes better position us as we continue to focus on building royalty-based revenue and driving profitable growth.”
“Our group is a staunch ally of companies in the technology and innovation sectors,” Maxime Page, director of technology and innovation banking at NBC, said. “We believe in the growth potential of D-BOX as well as in their business strategy, and are pleased to support them in their future projects.”
