VANCOUVER, BC, May 19, 2021 /CNW/ - Freshlocal Solutions
Inc. (TSX: LOCL) ("Freshlocal" or the "Company") is pleased to
announce that the company has entered into a new $15 million credit financing facility with
Silicon Valley Bank (SVB).
"This non-dilutive credit facility provides us with important
financial and operating flexibility at terms that we believe are
favorable to the company," stated Peter van
Stolk, Chief Executive Officer of Freshlocal. "These funds
will assist us in advancing the development of our eGrocery
Management Solution which enables the profitable provision of
online grocery services at a time when the global grocery business
is experiencing a rapid shift to on-line grocery."
Building upon over 20 years of experience gained while
successfully offering online and retail grocery services to its
customers in Western Canada,
Freshlocal introduced its end-to-end, SaaS-based eGrocery
Management Solution (eGMS), FoodX, to the global grocery market in
2018. FoodX brings profitable, efficient, and sustainable online
grocery fulfillment capabilities to grocers of all sizes. Given the
increased adoption of eGrocery, which has accelerated further as a
result of the global pandemic, the FoodX eGMS is ideally positioned
to provide a proven eGrocery solution to a global base of potential
customers.
Since Freshlocal's introduction of FoodX, important customer
wins have been secured including Carrefour Group, a longstanding
global leader in the grocery industry that has implemented the
FoodX system to serve its customers in Europe. Meridian Farm Market, a Mid-Market
grocery retailer in Vancouver,
B.C, has also been secured as a FoodX customer, with
implementation taking place in late 2021.
"Using its deep experience in online grocery, Freshlocal has
developed an important technology solution with the capabilities to
drive profitable unit economics for the rapidly expanding global
online grocery business," said Caterina
Papadakos, Director, Technology Banking at Silicon Valley
Bank. "We are pleased to be working with Freshlocal as it connects
with new customers in this high-growth market."
In March 2021, Freshlocal secured
a revolving loan facility of up to $15.0
million with SVB. The loan facility is secured by a
first-priority cash collateral and matures on March 12, 2023. The proceeds from the facility
will be used to fund the continued development of Freshlocal's
FoodX eGMS platform as well as for expansion and working capital
purposes.
About Freshlocal Solutions Inc.
Freshlocal Solutions is a Vancouver-based company that is building a
leadership position in the provision of end-to-end grocery
e-commerce solutions. The Company operates two primary businesses,
FoodX and eGrocery, both of which support its corporate mission to
leverage innovation and technology to create a sustainable and
profitable food system for all. Food-X Technologies ("FoodX") is
Freshlocal's scalable end-to-end SaaS-based eGrocery Management
Solution (eGMS) which is designed to meet the needs of large and
small grocery retailers while providing profitable unit economics.
The FoodX eGMS is the culmination of over 20 years of experience in
online grocery and the company's proven track record of delivering
efficiently, sustainably and profitably. The Company's consumer
eGrocery business has expanded into one of Canada's largest online grocery companies,
with a focus on delivering fresh, local, organic produce and
groceries, along with exceptional customer experiences. Freshlocal
Solutions serves the main urban markets in Alberta and British
Columbia through its brick and mortar store locations
operating under the Blush Lane and Be Fresh banners, as well as
through SPUD.ca which is the Company's award-winning online
eGrocery platform. Freshlocal's common shares are listed on the
Toronto Stock Exchange under the symbol "LOCL". Please visit
www.freshlocalsolutions.com.
About Silicon Valley Bank
For nearly 40 years, Silicon Valley Bank (SVB) has helped
innovative companies and their investors move bold ideas forward,
fast. SVB provides targeted financial services and expertise
through its offices in innovation centers around the world. With
commercial, international and private banking services, SVB helps
address the unique needs of innovators. Learn more
at svb.com/canada.
Notice on Forward Looking Information
Certain statements and information herein, including all
statements that are not historical facts, contain forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or
information include but are not limited to statements or
information with respect to the strategic partnership between the
Company and Carrefour Group or Meridian Farm Market. Often, but not
always, forward-looking statements or information can be identified
by the use of words such as "estimate", "project", "belief",
"anticipate", "intend", "expect", "plan", "predict", "may" or
"should" and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information.
With respect to forward-looking statements and information
contained herein, the Company has made numerous assumptions
including among other things, assumptions about general business
and economic conditions of the Company and the market in which it
operates. The foregoing list of assumptions is not
exhaustive.
Although management of the Company believes that the
assumptions made and the expectations represented by such
statements or information are reasonable, there can be no assurance
that forward-looking statements or information herein will prove to
be accurate. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. These factors include, but are not
limited to: risks associated with the business of the Company;
business and economic conditions in the eGrocery industry
generally; the supply and demand for labour and other project
inputs; changes in commodity prices; changes in interest and
currency exchange rates; risks relating to unanticipated
operational difficulties (including failure of technology or
processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of government
approvals, industrial disturbances or other job action, and
unanticipated events related to health, safety and environmental
matters); changes in general economic conditions or conditions in
the financial markets; changes in laws; risks related to the direct
and indirect impact of COVID-19 including, but not limited to, its
impact on general economic conditions; the ability to obtain
financing as required; and other risk factors as detailed from time
to time. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
SOURCE Freshlocal Solutions Inc.
