NanoXplore has announced the closing of a new credit facility with the Royal Bank of Canada (“RBC”). Under the agreement, RBC will provide NanoXplore’s subsidiaries with up to CAD$60 million (about USD$43,567,000) .
The credit facility, inclusive of an existing equipment lease and other financial products, will provide a CAD$10 million (around USD$7,261,000) revolving credit line, up to CAD$45 million (USD$32,677,000) in equipment leasing and CAD$5 million (about USD$3,630,000) in term loans and will carry interest rates similar to those the Corporation currently pays. The new credit facility will allow for the reimbursement of existing loans of approximately CAD$4.7 million (USD$3,412,000) with other lenders.
The Company stated that this expanded credit facility has been made possible by the improvements across its financial performance and metrics over the last year and will provide additional liquidity and flexibility to execute its five-year strategic plan.
“I am very pleased we were able to secure a credit facility from a top lender such as RBC who sees the growth potential in the NanoXplore business. This credit facility will provide NanoXplore’s subsidiaries with additional financial resources to drive long term growth and expansion” says Pedro Azevedo, Chief Financial Officer.
This is seen by the Company as a significant step forward in completing the financial requirements to meet its capex needs. The Corporation is also in the process of finalizing up to CAD$80 million in non-dilutive government incentives that will cover most of the remaining portion of its capital needs for execution of the five-year strategic plan.
Soroush Nazarpour, President & Chief Executive Officer, said: “As recently announced, our capital requirement for our 5-year strategic plan sits near $140M and we expect to be able to fund these initiatives through a combination of government support and the credit facility. As our capital allocation program continues in the next 24 months, we expect to see contribution to our financial results starting in 2026.”