EDMONTON, AB, Nov. 4, 2020 /CNW/ - McCoy Global Inc. ("McCoy",
"McCoy Global" or "the Corporation") (TSX: MCB) today announced it
has secured a new US$2.5 million
revolving demand facility with a Canadian chartered bank to support
working capital. The facility is subject to customary disbursement
conditions including the satisfactory placement of a general
security agreement over the Corporation's assets and final review
by Export Development Canada under its Export Guarantee Program.
The Corporation has also successfully refinanced its existing
US$2.4 million promissory note with a
US$3.4 million term facility to
extend maturity and support McCoy Global's 2020 technology
development program.
"Securing these facilities has lowered our overall financing
costs, extended maturity dates and enables us to continue to
progress the development of new digital technology solutions
despite the impact COVID-19 has had on our business and cashflows,"
said Jim Rakievich, McCoy Global
President & CEO.
The US$2.5 million revolving
demand facility bears interest at Prime Rate plus 1.35% per annum
and will be secured by a general security agreement and assignment
of US$0.63 million of term deposits.
Subject to final review, the demand facility will be guaranteed by
Export Development Canada under its Export Guarantee Program and is
subject to customary conditions.
The Corporation's US$3.4 million
term facility bears interest at US Prime Rate plus 4.95% per annum
and is repayable in eight equal quarterly instalments beginning on
December 6, 2022. The facility is
subject to customary conditions and is secured by certain assets of
the Corporation and its subsidiaries, including certain real estate
in Cedar Park, Texas. Under the
terms of the agreement, the Corporation is subject to a financial
covenant minimum fixed charge coverage ratio of 1:1 for the year
ending December 31, 2021; and 1.25:1
for years ending thereafter. At closing, US$2.4 million was drawn against the new facility
to repay in full the Corporation's USD$2.4
million promissory note that was secured by certain of its
US real estate assets. The former promissory note was repayable on
or before October 1, 2021 without
penalty and bore interest at the greater of US Prime Rate plus
7.00% or 12.25% per annum.
About McCoy Global Inc.
McCoy Global provides technologies designed to support wellbore
integrity and assist with collecting critical data for the global
energy industry. The Corporation operates internationally through
direct sales and distributors with operations in Canada, the United
States of America and the United
Arab Emirates. McCoy's
corporate headquarters are located in Edmonton, Alberta, Canada. The Corporation's
shares are listed on the Toronto Stock Exchange and trade under the
symbol "MCB".
Forward-Looking Information
This News Release contains forward looking statements and
forward looking information (collectively referred to herein as
"forward looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward looking statements. Forward
looking information is often, but not always, identified by the use
of words such as "could", "should", "can", "anticipate", "expect",
"objective", "ongoing", "believe", "will", "may", "projected",
"plan", "sustain", "continues", "strategy", "potential",
"projects", "grow", "take advantage", "estimate", "well positioned"
or similar words suggesting future outcomes. This New Release
contains forward looking statements respecting the business
opportunities for the Corporation that are based on the views of
management of the Corporation and current and anticipated market
conditions; and the perceived benefits of the growth strategy and
operating strategy of the Corporation are based upon the financial
and operating attributes of the Corporation as at the date hereof,
as well as the anticipated operating and financial results. Forward
looking statements regarding the Corporation are based on certain
key expectations and assumptions of the Corporation concerning
anticipated financial performance, business prospects, strategies,
the sufficiency of budgeted capital expenditures in carrying out
planned activities, the availability and cost of labour and
services and the ability to obtain financing on acceptable terms,
which are subject to change based on market conditions and
potential timing delays. Although management of the Corporation
consider these assumptions to be reasonable based on information
currently available to them, they may prove to be incorrect. By
their very nature, forward looking statements involve inherent
risks and uncertainties (both general and specific) and risks that
forward looking statements will not be achieved. Undue reliance
should not be placed on forward looking statements, as a number of
important factors could cause the actual results to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in the forward
looking statements, including inability to meet current and future
obligations; inability to complete or effectively integrate
strategic acquisitions; inability to implement the Corporation's
business strategy effectively; access to capital markets;
fluctuations in oil and gas prices; fluctuations in capital
expenditures of the Corporation's target market; competition for,
among other things, labour, capital, materials and customers;
interest and currency exchange rates; technological developments;
global political and economic conditions; global natural disasters
or disease; and inability to attract and retain key personnel.
Readers are cautioned that the foregoing list is not exhaustive.
The reader is further cautioned that the preparation of financial
statements in accordance with IFRS requires management to make
certain judgments and estimates that affect the reported amounts of
assets, liabilities, revenues and expenses. These judgments and
estimates may change, having either a negative or positive effect
on net earnings as further information becomes available, and as
the economic environment changes. The information contained in this
News Release identifies additional factors that could affect the
operating results and performance of the Corporation. We urge you
to carefully consider those factors. The forward looking statements
contained herein are expressly qualified in their entirety by this
cautionary statement. The forward looking statements included in
this News Release are made as of the date of this New Release and
the Corporation does not undertake and is not obligated to publicly
update such forward looking statements to reflect new information,
subsequent events or otherwise unless so required by applicable
securities laws.
SOURCE McCoy Global Inc.