Thetford Mines, Quebec – August 6, 2021 – KDA Group Inc. (TSXV: KDA) (“KDA” or the “Corporation”) is pleased to announce the closing of a new term debt financing of up to CAD $7.0 million with a December 30, 2022, maturity date (the “Debt Financing”) with Private Debt Partners (“PDP”).
“KDA’s management is proud to have closed this Debt Financing with Private Debt Partners. This allows the Corporation to exit National Bank of Canada’s special loans department and improves its current and future financial position. Furthermore, the financing for the development of our technological projects is secured and we will now be able to concentrate on the commercialization, marketing and success of each of them. I would like to thank Private Debt Partners for their collaboration and assistance with this Debt Financing,” said Sylvain Duvernay, Chief Executive Officer of KDA.
The Debt Financing consists in two (2) separate loans of $3.0 million each to KDA’s two (2) wholly owned subsidiaries and $1.0 million incremental has been pre-approved and can be called by KDA with PDP’s approval subject to a 2% per year standby fee. The interest rate of the Debt Financing is 9.95% per year.
The Debt Financing is secured through general security agreement and hypothecs with a parental guarantee from KDA. The parties have agreed to financial covenants, non-financial covenants and conditions precedent between them.
The use of proceeds is to refinance existing term debt and operating facility held by National Bank of Canada, to fund Groupe Technologique KDA Inc. and for general working capital purposes.
Also, PDP has been granted $420,000 worth of warrants in KDA, representing 3,000,000 warrants that entitles PDP to purchase 3,000,000 Class A Shares of KDA (the “Common Shares”) at an exercise price of $0.14 per Common Share with an expiration date of December 30, 2022, in respect with TSX Venture Exchange’s (“TSXV”) policy.
The Debt Financing is subject to the final approval of any regulatory authorities by which each party must comply to, in particular the TSXV.
ABOUT KDA GROUP
KDA Group is a leading technological innovations and specialized solutions provider in the pharmaceutical market. Today, it is a respected name for quality and expertise among the different stakeholders in the pharmaceutical and medical sector. Its management team is guided by a vision of continuing to lead the way in Quebec while extending operations across Canada and internationally. Additional information on the Corporation is available at www.kdagroup.ca and on SEDAR at www.sedar.com.
ABOUT PRIVATE DEBT PARTNERS
Private Debt Partners (PDP) is a private debt firm solely focused on Canadian mid-market opportunities. PDP originates and structures senior secured loans to high-quality companies. Additional information on PDP is available at www.privatedebt.com.
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release from KDA Group contains forward-looking statements. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target, and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, predict, could, expect, intend, may, plan, seek, should, strive, and will. By their nature, forward-looking statements require us to make estimates and assumptions and express opinions based on current conditions and anticipated developments, as well as other factors that Management may deem appropriate under the circumstances. There is inherent uncertainty and significant risk in these estimates, assumptions, and opinions, particularly of a commercial, economic, and competitive nature, and they are therefore subject to change. KDA Group cannot guarantee that these estimates, assumptions, and opinions will prove to be accurate.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
INFORMATION
Sylvain Duvernay
Chief Executive Officer
514 622-7370
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