EDLEUN CREDIT FACILITY TO SUPPORT NEAR TERM GROWTH
CALGARY, Nov. 18 /CNW/ - Edleun Group, Inc. (TSX-V: EDU) ("Edleun" or the "Company") the leading Canadian operator, consolidator and developer of child care facilities, announced today it will enter into a $25 million credit agreement with a Canadian bank. The credit facility will enable the funding of additional acquisitions as well as provide construction and longer term take-out financing for the development of new child care centres consistent with Edleun's strategic plan. The credit facility is subject to customary conditions, the adherence to certain financial covenants and is secured by the real estate assets of the Company. The credit facility has a term of five years. Completion of the credit facility is subject to finalization of, among other things, loan and security documentation satisfactory to the lender and borrower.
"Securing these credit facilities provides us with a source of non-dilutive capital and improved financial flexibility in the execution of our near-term growth strategy," said Leslie Wulf, Chief Executive Officer of Edleun. "In combination with cash on hand, financing our real estate will allow us to act on further acquisition opportunities as well as build our first new child care centres, improving the overall quality of care in the communities we serve and bringing additional child care spaces to underserved areas."
About the Company
Edleun is the leading provider of high-quality, educational child care in Canada. The Company is committed to providing children, families and employers with access to, and choice of, quality early childhood education programs, helping Canadians balance their work and family lives.
The Company's objectives include the acquisition and improvement of existing child care centres and development of new child care centres across Canada. Edleun is pursuing the development of new "State of the Art" child care centres in a number of Calgary and Edmonton residential communities which are currently underserved.
FORWARD-LOOKING STATEMENTS:
Certain statements in this Release which are not historical facts may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements related to Edleun's projected revenues, earnings, growth rates, revenue mix, staffing and resources, and product plans are forward looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "believes", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions. Except as required by law, Edleun does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
The Company undertakes no obligation, except as required by law, to update publicly or otherwise any forward-looking information, whether as a result of new information, future events or otherwise, or the above list of factors affecting this information. Many factors could cause the actual results of Edleun to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.
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.
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For further information: For further information:
Leslie Wulf, Chief Executive Officer of Edleun Group, Inc. at (403) 800-0890 or Nick Hurst of the Equicom Group, Inc. at (403) 218-2835
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