Inscape entered into a new $15 million senior credit facility with FrontWell Capital Partners to replace its existing senior credit facility with CIBC. The new loan facility is a secured revolving credit facility with a committed term of 12 months with options to renew thereafter. Inscape will use the proceeds of the loan facility to repay existing indebtedness, finance new capital equipment and for general working capital purposes.

The availability of the loan facility is subject to compliance with certain financing, reporting and other covenants. Borrowings under the loan facility are available at rates based on the Canadian dollar prime rate and the U.S. dollar base rate and bear interest at a rate of prime rate (or U.S. base rate, as applicable) plus 8.75%.

“We are very pleased to enter into this loan facility, as it further improves our liquidity and enhances our financial flexibility as we navigate through these unprecedented conditions in the workplace environment,” Eric Ehgoetz, CEO of Inscape, said. “COVID-19 has accelerated our need to right-size our cost structure, including moving and downsizing our Jamestown (Falconer), New York, facility, which was completed on March 31st, 2021, and the addition of new manufacturing equipment, which we believe will improve our operational capabilities. The board and the company’s management team are keenly focused on quickly getting the company to a level of sustained profitability which will enhance Inscape’s operating leverage once economic growth resumes and a more typical operating environment does eventually return.”