FRANKLIN, IN – (July 29, 2021) – IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) is pleased to announce new credit facilities (the “Credit Facilities”) of up to US$8,000,000 established pursuant to (a) a credit and security agreement (the “Credit Agreement”) among Iron Horse Credit, LLC and certain of the Company’s U.S. subsidiaries (the “Subsidiaries”) and (b) an account sale and purchase agreement (the “ASPA”) among Sallyport Commercial Finance, LLC and the Subsidiaries. The Credit Facilities replace the Company’s existing revolving credit facility with the Bank of Montreal.
Pursuant to the Credit Agreement, Iron Horse Credit, LLC will provide the Subsidiaries with a secured revolving credit facility of up to US$4,000,000. Pursuant to the ASPA, Sallyport Commercial Finance will provide the Subsidiaries with up to US$4,000,000 in advance purchase funding based on the sale of the Subsidiaries’ accounts receivable, with up to US$2,500,000 to be utilized in the near term, and the remaining US$1,500,000 to be utilized at the election of the Subsidiaries. The Subsidiaries will grant the lenders a senior security interest in their personal property assets, inventories and accounts receivables, subject to the terms of an intercreditor agreement.
IBC intends to use the proceeds of the Credit Facilities to advance the consolidation and modernization of the Company’s copper alloys manufacturing facility in Franklin, Indiana and for working capital purposes.
The Credit Agreement will accrue interest at a rate of 1.166% per month on outstanding amounts, with such interest compounded and payable monthly and has a maturity date of 12 months subject to further renewal. The ASPA will accrue interest at a rate of equal to the prevailing prime rate plus 2% per annum on outstanding amounts, with such interest compounded and payable monthly, as well as a factoring fee of up to 1% of account face value. The ASPA has an initial term of 12 months subject to further renewal.
Pursuant to the terms of the Credit Facilities, the Subsidiaries will pay aggregate fees totaling US$85,000 at close and an annual facility fee of US$60,000. The Credit Facilities are also subject to customary terms for similar credit arrangements in the United States manufacturing sector.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
Mark Smith P.E., Esq. , Chairman
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Mark A. Smith, Chairman
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC’s Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC’s Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQB under the symbol “IAALF”.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither 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.
Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “will”, “may” and “should” and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, the use of proceeds of the Credit Facilities. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company’s future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Please see “Risks Factors” in our Annual Information Form available under the Company’s profile at www.sedar.com, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.