TSX symbol: BX
TORONTO, May 12, 2017 /CNW/ - BIOX Corporation ("BIOX" or the "Company") (TSX: BX), a renewable energy company that owns and operates biodiesel production facilities, today announced that it has secured a renewal of its term loan with Farm Credit Canada ("FCC") for $7.5 million with a five-year term. The term loan carries a variable interest rate of prime from a Canadian charter bank plus 2.30%, which is 70 basis points less than the prior rate.
"This renewal provides us flexibility as we transition from the asset growth strategy we have successfully executed during the past twelve months to our operating strategy," said Alan Rickard, Chief Executive Officer of BIOX. "FCC has been a great partner for the past five plus years as we have scaled our operations and expanded our market reach. With two production facilities in Ontario and a third facility at the Kinder Morgan terminal in Houston, the assets are strategically located to position us as one of the most efficient suppliers of product and compliance to obligated parties in the North American market."
The term loan is a renewal of the existing loan from FCC which BIOX entered into in August 2011. The debt is secured by all assets of BIOX Canada Limited as well as by a guarantee from BIOX Corporation. BIOX must fund and maintain a segregated reserve fund in the amount of $1,174,000 in trust for FCC when the Company's cash balance is less than $5 million. BIOX maintains a segregated reserve fund in the amount of $1,174,000 which is classified as restricted cash on the statement of financial position.
About Farm Credit Canada
Farm Credit Canada is Canada's leading agriculture lender, with a healthy loan portfolio of more than $30 billion. Its employees are dedicated to the future of Canadian agriculture and its role in feeding an ever-growing world. FCC provides flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and agri-food industry. Its profits are reinvested back into agriculture and the communities where its customers and employees live and work. Visit fcc.ca for more information.
About BIOX Corporation
BIOX is a renewable energy company that, owns and operates 287.5 million litres of nameplate biodiesel production capacity at plants located in Houston, Texas and two facilities in southern Ontario. BIOX has an innovative, proprietary and patented production process that is capable of producing the highest quality, renewable, clean burning and biodegradable biodiesel fuel utilizing a variety of feedstocks - from pure seed oils to animal fats to recovered vegetable oils with no change to the production process. BIOX's high quality biodiesel fuel meets North American (ASTM D-6751) quality standards.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of BIOX, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. These statements reflect BIOX's current views regarding future events and operating performance, are based on information currently available to BIOX, and speak only as of the date of this press release. These forward-looking statements, involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that BIOX's results of operations and business outlook are highly dependent on a mix of legislation and producer payment programs and tax credits and upon commodity prices, which are subject to significant volatility and uncertainty. Many factors could cause the actual results, performance or achievements of BIOX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including factors described in this press release and those discussed in BIOX's publicly available disclosure documents, as filed by BIOX on SEDAR (www.sedar.com) except as updated herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, BIOX does not intend and does not assume any obligation to update these forward-looking statements. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur and readers are cautioned that any financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.
SOURCE BIOX Corporation
For further information: Alan Rickard, CEO, BIOX Corporation, 905-521-8205 ext. 253, [email protected]