Advantex Announces Multi-Year Renewal of Credit Facility
TORONTO, January 4, 2018 (GLOBE NEWSWIRE) – Advantex Marketing International Inc. (CSE: ADX) (“Advantex” or the “Company”), a leading specialist in the marketing services industry, today announced it has renewed its credit facility with Accord Financial Inc.
The renewed agreement is for a multi-year term ending in December 2021 and allows for automatic renewal thereafter for periods of one year unless either party gives termination notice.
The credit facility has a limit of $8.5 million. The current utilization by the Company is about $4.2 million. The renewed and enhanced credit facility together with the access to additional working capital following completion of the recently announced restructuring will have a positive impact on the Company. The working capital will be used in the transition to the next phase of recovery of the Company’s core business during which it expects a gradual but sustained growth in its CIBC/TD program merchant base and related revenues.
The renewed agreement also carries more beneficial terms, effective immediately, in terms of interest rate and margin funding formula.
Accord Financial Inc. is a subsidiary of Accord Financial Corp. (TSX: ACD) and has been a valued partner to the Company since 2007. Accord Financial Corp. is one of North America’s leading independent finance companies that provides distinctive working capital solutions to small and medium-sized companies across the United States and Canada.
Advantex provides specialized marketing programs that enable members of affinity groups to earn frequent-flyer miles and other loyalty rewards through purchases at participating merchants.
Through partnerships with Aeroplan, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Caesars Entertainment, Advantex has contractual access to millions of consumers with above-average personal and household income. Advantex also has partnerships with over 1,000 merchants in Canada and the US.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information, go to www.advantex.com.
This news release contains “forward-looking statements” within the meaning of applicable securities laws relating to the future business and operations of Advantex. Readers are cautioned not to place undue reliance on those forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ material include, but are not limited to, changes in Advantex’s economic and competitive conditions relating to the industry sectors in which Advantex operates.
The statements in this news release are made of the date of this release. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.