Montreal-based D-BOX Technologies Inc. (TSX: DBO), a global leader in immersive entertainment experiences, has secured significant financial adjustments to enhance its financial flexibility, as announced on Monday. The company's CFO, David Montpetit, has spearheaded these changes, which include an increase in the firm's operating line of credit with the National Bank of Canada (OTC:NTIOF) (NBC) from CAD$4 million to CAD$5.5 million.
In addition to the credit line boost, D-BOX successfully negotiated a reduction in interest rates for CAD and USD loans by 75 basis points, from prime plus 3.25% to prime plus 2.50%. The company also revised its financial covenants and extended the maturity of two term loans. The first loan is under the Highly Affected Sectors Credit Availability Program, extended from September 2024 to September 2025 and the second loan with Business Development Bank of Canada (BDC) is now due in June 2028, extended from June 2026.
The upsized credit line is secured by first-ranking hypothec on all movable/personal property of D-BOX and its U.S. subsidiary, backed by a guarantee from Export Development Canada. A portion of the enhanced credit line was used to fully repay a CAD$1 million term loan with NBC that was due in February 2024, which had an outstanding balance of approximately CAD$870,000 (USD1 = CAD1.3622).
CFO David Montpetit attributed these positive changes to D-BOX's strong financial performance and confidence shown by their financial partners. He also acknowledged the role of the Economic Development Agency of Canada in securing these amendments. Montpetit stated that the upsized credit line and extended loan maturities provide greater flexibility in treasury management while reducing financial costs, aligning with their royalty-based revenue strategy.
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