Advantex and Accord Extend Agreement
TORONTO, Sept. 30, 2021 /CNW/ - Advantex Marketing International Inc. (CSE: ADX) ("Advantex"), a leader in the merchant cash advance and loyalty marketing products for merchants, is pleased to announce that it has agreed with Accord Financial Inc. ("Accord") to extend the term of their credit facility agreement until June 30, 2022.
Accord provides a $8.5 million line of credit facility to Advantex for the operation of its merchant cash advance program. The agreement is subject to automatic renewal thereafter for periods of one year unless terminated by either party upon 180 days written notice.
Effective September 1, 2021, the interest rate on funds borrowed under the credit facility agreement is equal to the prime rate of a Canadian chartered bank plus 8.80%, a reduction of 25 basis points from the previously applicable interest rate.
Accord also has the option to convert the $450,000 overdraft facility, which was extended to support Advantex during the Covid-19 pandemic, to equity or quasi equity on terms to be agreed with Advantex. If Accord does not exercise this option by December 31, 2021, the overdraft facility will be repayable by Advantex in six equal monthly instalments beginning January 2022.
About Advantex Marketing International Inc.
Advantex provides working capital to merchants. Advantex also provides specialized marketing programs that enable members of Aeroplan to earn Aeroplan points at participating merchants.
Advantex shares trade on the Canadian Securities Exchange under the symbol ADX. For more information go to Advantex's profile on www.sedar.com
Forward-Looking Information
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the future business and operations of Advantex. Actual results and developments may differ materially from those contemplated by these statements. The business and operations of Advantex described herein is dependent on a number of factors and is subject to a number of risks and uncertainties. Factors that could cause actual results to differ material include, but are not limited to, changes in Advantex's economic and competitive conditions including but not limited to the industry sectors in which Advantex operates.
The statements in this news release are made of the date of this release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and Advantex undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
SOURCE Advantex Marketing International Inc.
Mukesh Sabharwal, Vice-President and Chief Financial Officer, Tel: 416-560-5173, Email: [email protected]
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