Fort Capital is pleased to announce that Freshlocal Solutions Inc. (TSX:LOCL) (“Freshlocal” or “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.”
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.
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 platform as well as for expansion and working capital purposes.
Fort Capital Partners acted as Financial Advisor to Freshlocal on the SVB Facility.
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.