EMERGE Secures 7-Year, $5.85M Debt Refinancing with Desjardins at Significantly Lower Interest Rate

• Interest rate reduced from 11.0% to 7.3% on Term Loan (3.7% lower)
• 7-year term through September 2033, extending senior debt maturity from October 2027 and significantly reducing near-term refinancing risk and costs
• ~$400K in annual cash flow savings expected, primarily directed towards debt reduction
• $5.85M term loan facility, and a $1M line of credit available to EMERGE for working capital
• Desjardins, one of Canada's leading financial institutions, joins EMERGE as a lending partner, supporting the Company's next phase of disciplined growth
• EMERGE CEO and CFO to host webcast on Thursday, September 24 at 11:00 AM ET (Register Below)

TORONTO, Sept. 23, 2026 /CNW/ -- EMERGE Commerce Ltd. (TSXV: ECOM) ("EMERGE" or the "Company"), an acquirer and operator of profitable e-commerce brands and technologies, today announced that it has refinanced its existing $5.85M senior credit facility with Desjardins Ontario Credit Union ("Desjardins"), securing a new 7-year term through September 2033, along with a 3.70% interest rate reduction.

Ghassan Halazon, Founder and CEO, EMERGE commented, "Following our multi-year efforts, we can finally share that EMERGE has officially secured a substantially lower-cost, long-term credit facility with Desjardins, one of Canada's most established financial institutions. Graduating to a traditional Canadian bank facility has been one of our key stated priorities for years, and was only made possible by EMERGE's significantly improved financial profile. The materially lower interest rate, combined with the elimination of recurring refinancing costs, is expected to meaningfully strengthen our cash flow, allowing us to direct the majority of these savings toward methodically reducing debt over the coming years, while preserving the flexibility to invest in our businesses and pursue accretive acquisitions as the right opportunities arise. We are grateful for the team at Desjardins for their vote of confidence in EMERGE at this exciting inflection point."

1.  Significantly Reduced Interest Rate

Under the Desjardins credit facility ("Term Loan"), the interest rate on the principal amount owing is equal to Prime Rate + 2.85% compared to Prime Rate + 6.55% per annum under the previous facility, a 3.70% reduction, effectively lowering the interest rate from 11.00% to 7.30% currently.

2.  7-Year Maturity and Reduced Refinancing Costs

The new 7-year Term Loan extends EMERGE's senior debt maturity to September 2033, from October 2027 under its previous facility, significantly reducing the refinancing risk and eliminating the recurring costs and expenses associated with its previous 12-to-18-month refinancing cycle.

In addition, Desjardins is providing EMERGE with an attractive interest-bearing account for the Company's cash balances, which was not available under its previous senior lending arrangement.

Collectively, the lower interest rate, reduced refinancing costs and interest income are expected to result in approximately $400K of cash flow savings in Year 1.

EMERGE intends to direct the majority of its annual cash flow savings toward methodically reducing debt over the coming years, while preserving flexibility for growth and accretive acquisitions.

3.  $1M Line of Credit Provides Additional Flexibility

As part of the refinancing, EMERGE will also have access to a $1M revolving line of credit ("Revolver") for working capital and other general corporate purposes, providing additional financial flexibility, particularly during seasonal periods of the year. The Revolver is guaranteed by Export Development Canada ("EDC") and bears interest at Prime Rate + 2.00%, or approximately 6.45% currently.

Benjamen Pinsky, Associate Director, Technology and Innovation Banking, Desjardins, commented, "Desjardins is pleased to support EMERGE as it enters its next phase of growth. This financing provides the Company with a long-term capital structure designed to support continued operational progress and growth across its portfolio of businesses."

Mike Murphy, Chief Financial Officer of EMERGE, commented, "This refinancing represents a major milestone in strengthening EMERGE's balance sheet and materially reducing our cost of capital. We are transitioning from restrictive, short-term financing to a long-duration capital structure designed to support the next phase of EMERGE's compounding strategy; generating sustainable cash flow, reducing debt over time, and investing in organic growth initiatives and accretive acquisitions."

In connection with the refinancing and termination of the Company's previous senior credit facility, the Company has elected to satisfy the applicable termination fee through the issuance of common shares of the Company (the "Termination Shares") to its previous senior lender, in lieu of a cash termination fee. Pursuant to the terms of the previous credit agreement, the Company has issued to an aggregate of 800,891 Termination Shares with the aggregate value of $67,275, equal to 1.15% of the $5.85M original facility limit. The Termination Shares have been issued at a share price equal to the lesser of (i) the five (5) day volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the "Exchange") ending on the business day immediately prior to the date of issuance of any such Termination Shares and (ii) the closing price of the Common Shares on the Exchange as of the business day immediately prior to the date of issuance of any such Termination Shares, being $0.084 per Termination Share.

The issuance of the Termination Shares remains subject to the final approval of the Exchange. 

Pursuant to the policies of the Exchange and applicable securities laws, the Termination Shares are subject to a four-month hold period. 

No finder's fees were paid in connection with the Desjardins refinancing.

Webcast

EMERGE CEO and CFO will host a virtual corporate presentation on Thursday, September 24, 2026 at 11:00am EST.

During the webcast, Mr. Halazon and Mr. Murphy will discuss the recently completed senior debt refinancing with Desjardins, in addition to the Company's overall operational progress and upcoming plans, followed by some Q&A with investors.

Investors are welcome to submit questions in advance to [email protected].

Register Here:
https://us06web.zoom.us/webinar/register/WN_gq8YlPTCQRymtk93mvIcew

About EMERGE

EMERGE Commerce (TSXV: ECOM) is a disciplined acquirer and operator of profitable e-commerce brands and technologies across Direct-to Consumer ("D2C") and Business-to-Business ("B2B") segments. Our D2C portfolio spans our Grocery and Golf verticals. truLOCAL is our flagship Canadian meat and seafood subscription service. Our Golf vertical includes UnderPar (discounted golf experiences), JustGolfStuff and Tee 2 Green (discounted apparel and equipment). EMERGE B2B houses Viral Loops, our referral marketing platform.  

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice regarding forward-looking statements

This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information.  Actual results and developments may differ materially from those contemplated by these statements.  The Company undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Company, its securities, or financial or operating results (as applicable).  Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the risk factors discussed in the Company's MD&A and Annual Information Form which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Unless otherwise noted, all amounts are in Canadian dollars.

On Behalf of the Board
Ghassan Halazon
Director, President, and CEO
EMERGE Commerce Ltd.

SOURCE Emerge Commerce Ltd.

For further information: Mike Murphy, EMERGE Commerce Ltd., 416-479-9590, [email protected]