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TORONTO, June 15, 2017 /CNW/ - LXRandCo, Inc. (TSX: LXR, LXR.WT) ("LXR" or the "Corporation") today announced that it has entered into a credit agreement with the Canadian Imperial Bank of Commerce ("CIBC") to support the Corporation's growth. The new credit facility is a revolving credit facility for an authorized amount of up to $25,000,000, subject to a maximum draw and based on a borrowing base calculated as a percentage of eligible accounts receivable and inventory. The new credit facility replaces the Corporation's previously held credit facility which was paid out in its entirety on June 9, 2017, concurrent with the closing of the Corporation's qualifying acquisition.
"The team at CIBC has understood the LXR opportunity since our very first meeting," said Fred Mannella, founder and CEO of LXR. "This new facility will be an important financing tool for our growth, and we're excited to be working with such a supportive lender. We look forward to building this great relationship further in the years ahead."
LXR is a rapidly growing, international omni-channel retailer of branded vintage luxury handbags and accessories. LXR sources and authenticates high quality pre-owned products and sells them through: a retail network of stores located in major department stores in Canada, the United States and Europe; wholesale operations primarily in the United States; and its own e-Commerce website, www.lxrco.com. LXR offers pre-owned products from iconic luxury brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, at attractive prices and seeks to appeal to the aspirational lifestyle needs of women of all ages. LXR's headquarters are located in Montréal, Québec, and LXR operates an office in Tokyo, Japan. Please visit www.lxrco.com.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect the Corporation's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Corporation's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the availability of capital and voting support for the Qualifying Acquisition.
The forward-looking statements in this news release are based on certain assumptions, including without limitation the Corporation's ability to achieve a borrowing base that will allow it to draw up to $25,000,000 on the credit facility The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Corporation assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE LXRandCo, Inc.
For further information: Please Contact: Jeremy Stepak, Interim Chief Financial Officer, (416) 301-1333