ST. JOHN’S, Newfoundland--(BUSINESS WIRE)--
Bluedrop Performance Learning (“Bluedrop”) (TSX-V: BPL) today announced that it has closed a $3.0 Million non-revolving credit facility with the Royal Bank of Canada. The loan facility bears interest at 4.09% per annum and matures on September 30, 2019. Monthly blended payments on the loan will be $30,000 per month in the first twelve months and $120,000 per month during the following twenty-four months. The loan is secured by the general security agreement for the Company’s existing working capital credit facilities with the Royal Bank of Canada.
The Company raised the new debt to preserve working capital for growth and to fund its maturing debt obligations during the next two years. Proceeds of the loan will be held in a Guaranteed Investment Certificate and held by the Royal Bank of Canada under a cash collateral agreement as additional security for the new loan until a decision is made regarding conversion or repayment of the Difference Capital Convertible Debenture.
Company Founder and CEO, Emad Rizkalla said, “With significant revenue growth over the past five years, having enough cash to fund growth has been a critical part of our strategy. For most of our history, our access to private capital has been limited to higher priced mezzanine financing—so it is great to see the Royal Bank of Canada supporting us with traditional senior debt. I think the new traditional senior debt speaks well of the momentum in our financial performance and risk profile.”
About Bluedrop
Bluedrop Performance Learning Inc. (TSX-V: BPL) is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Bluedrop is transforming the workplace globally by designing, developing and delivering practical, actionable and affordable training content and delivery platforms that improve individual and overall performance of organizations. For more information, visit www.bluedrop.com.
This news release may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements, other than statements of historical fact included in this release, constitute forward-looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the operational efficiencies associated with the integration of technological and financial systems and general economic and market conditions. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.
Important factors that could cause actual results to differ materially from Bluedrop’s expectations include general global economic conditions. For additional information with respect to risk factors applicable to Bluedrop, reference should be made to Bluedrop's continuous disclosure materials filed from time to time with securities regulators, including, but not limited to, Bluedrop's Annual Information Form and Management’s Discussion and Analysis of Results of Operations and Financial Condition for the year ended September 30, 2015. The forward-looking information contained in this release is made as of the date of this release and Bluedrop does not undertake to update publicly or revise the forward-looking information contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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 release.
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