TORONTO, May 21, 2020 (GLOBE NEWSWIRE) — Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) announced today that it has signed a binding commitment letter for a $6.25 million 12-month term loan from a Schedule 1 bank in partnership with the Export Development Corporation. This loan bears interest at the bank’s prime rate + 4%, with an annual guarantee fee of 1.8% and is secured by a first rank general security agreement on EcoHome. The Company may request a 12 month extension which may be granted at the discretion of the Bank.
“This term loan improves Dealnet’s financial position and positions the company for future origination growth and value creation once the current health and financial crisis shows signs of easing,” said Brent Houlden, CEO of Dealnet. “I am delighted that despite the immediate challenges posed by COVID-19, we were able to secure the necessary financing while avoiding dilution and preserving equity. »
INFOR Financial Inc. acted as financial advisor to the Company in connection with the term loan.
About Dealnet Capital Corp.
Dealnet is the parent company of subsidiaries operating in two market segments, consumer credit and call centers. The Company operates in the consumer finance industry in Canada through EcoHome Financial Inc. (“EcoHome”) and its call center segment under the One Contact banner (“One Contact”). .
EcoHome is a specialty finance company serving the $20 billion Canadian home improvement finance market. EcoHome develops and supports consumer sales financing programs for authorized dealers and distributors through agreements with original equipment manufacturers (OEMs) who supply a wide range of home improvement products to the retail market . Through a network of dealers, EcoHome underwrites, originates, finances and manages the premium loans and leases that owners need to finance the acquisition and installation of capital assets that improve the quality, comfort and the safety of their home.
One Contact provides customer support services to third-party institutions across Canada and the United States and to EcoHome.
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This press release contains certain “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management as of the date the information is provided and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results actuals differ materially from those projected in the forward-looking information. information search. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s MD&A. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.