Liberty Defense Clarifies Previously Announced Credit Facility and Term Loan

Rhea-AI Summary

Liberty Defense Holdings (DETX) clarified its Parabilis financing terms and confirmed that both its credit facility and term loan have no outstanding balances.

The subsidiary originally obtained a US$1.8 million term loan and US$2.5 million revolving credit facility, secured by substantially all its assets and unconditionally guaranteed by Liberty. Total funded term-loan advances reached US$2.45 million, versus approximately US$2.9 million contemplated. Annual interest rates were 17.99% for the term loan and 14.99% for the facility. The facility was extended to May 31, 2026, with automatic one-year renewals unless Parabilis gives 90-days’ notice, and a 0.083% monthly commitment fee. All term-loan principal and accrued interest have been repaid.

3 points · 2 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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How the balance worksHow Sentiment works

0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointTerm-loan funding totaled US$2.45 million in principal advances to the subsidiary. 36% of market cap
• Major pointThe US$2.5 million revolving credit facility provided additional working capital flexibility. 37% of market cap
• Moderate pointTerm-loan principal and accrued interest are fully repaid; the credit facility also has no outstanding balance.

Negative

• Moderate pointFinancing was secured by substantially all subsidiary assets, with Liberty unconditionally guaranteeing the subsidiary’s obligations.
• Minor pointTerm-loan advances fell short of approximately US$2.9 million contemplated; only US$650,000 in additional advances were funded.
• Minor pointThe term loan carried 17.99% annual interest, payable monthly in arrears.
• Minor pointThe credit facility carries 14.99% annual interest, payable monthly in arrears.
• Minor pointThe credit-facility amendment added a 0.083% monthly commitment fee.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Automatic one-year facility renewals are subject to Parabilis giving 90-days’ notice to stop renewal.
• Minor pointFacility borrowing capacity depends on eligible receivables and delivery orders, rather than its stated limit alone.

Key Figures

Term Loan principal: US$1.8 million Credit Facility: US$2.5 million Credit Facility interest rate: 14.99% per annum +5 more

Term Loan principal

US$1.8 million

Initial term loan provided under the agreement

Credit Facility

US$2.5 million

Revolving credit facility

Credit Facility interest rate

14.99% per annum

Payable under the Credit Facility

Term Loan interest rate

17.99% per annum

Payable monthly in arrears

Contemplated principal advances

approximately US$2.9 million

Term Loan amendment on August 14, 2025

Additional advances funded

US$650,000

Funded under the amended Term Loan

Total funded principal advances

US$2.45 million

Term Loan advances to the Subsidiary

Credit Facility outstanding

US$Nil

As of the press release date

Key Terms

revolving credit facility, borrowing base, commitment fee, in arrears

4 terms

revolving credit facility financial

"a US$2.5 million revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

borrowing base financial

"The borrowing base for the Credit Facility is determined"

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

commitment fee financial

"pay a 0.083% monthly commitment fee"

A commitment fee is a charge a lender applies to a borrower for keeping a loan or line of credit available, even before any money is drawn. Think of it as a reservation fee for borrowing power; the borrower pays to ensure funds will be there when needed. Investors care because it adds to a company’s borrowing cost, affects cash flow and liquidity, and can signal lenders’ willingness to extend credit.

in arrears financial

"payable monthly in arrears"

In arrears means a payment that was due has not been made on time, or that payments are scheduled to be made after the period they cover (for example, paying interest at the end of a month rather than at the start). For investors, arrears matter because they indicate possible cash-flow strain or higher credit risk and change when income or expenses are recognized—like a landlord not getting rent when expected, which can signal trouble or alter available cash.

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WILMINGTON, Mass., Nov. 13, 2026 (GLOBE NEWSWIRE) -- Liberty Defense Holdings Ltd. (“Liberty” or the “Company”) (NASDAQ: DETX; TSXV: SCAN), a leading provider of AI-based next-generation detection solutions for concealed weapons and threats, issues this clarifying news release requested by the TSX Venture Exchange (the “TSXV”) regarding a credit facility and term loan entered into by the Company with PFF, LLC (“Parabilis”) previously announced on August 22, 2024.

The Company’s wholly-owned subsidiary Liberty Defense Technologies Inc. (the “Subsidiary”) and Parabilis entered into a Loan and Security Agreement dated August 19, 2024, as amended March 15, 2025, July 15, 2025, August 14, 2025 and September 1, 2025, pursuant to which Parabilis provided the Subsidiary with a US$1.8 million term loan (the “Term Loan”) and a US$2.5 million revolving credit facility (the “Credit Facility”) secured by substantially all of the Subsidiary’s assets, with the obligations of the Subsidiary unconditionally guaranteed by the Company. The Credit Facility and Term Loan were established to provide the Company with additional working capital flexibility.

The Credit Facility bears interest at 14.99% per annum and the Term Loan bears interest at 17.99% per annum payable monthly in arrears. The Term Loan had a term of 104 weeks and was scheduled to mature on August 15, 2026. The Credit Facility originally had a maturity date of August 31, 2025, with an option to extend at Parabilis’ sole discretion. On September 1, 2025, the parties amended the Credit Facility by extending the maturity date to May 31, 2026, with automatic one-year renewals unless Parabilis provides 90-days’ notice and the Company agreeing to pay a 0.083% monthly commitment fee. On August 14, 2025, the Term Loan was amended to provide for additional advances which contemplated total principal advances of approximately US$2.9 million, but only US$650,000 in additional advances were funded, resulting in total funded principal advances of US$2.45 million to the Subsidiary.

The borrowing base for the Credit Facility is determined based on the following percentages: 90% of eligible billed receivables, 65% of eligible unbilled receivables, and 30% of eligible delivery orders. The aggregate of eligible billed and unbilled receivables, along with eligible delivery orders, establishes the Subsidiary’s borrowing capacity under the Credit Facility. When invoicing occurs, payments on the invoices are applied directly to the outstanding principal and interest on the Credit Facility. As of the date of this press release US$Nil is outstanding under the Credit Facility and all principal and accrued interest under the Term Loan have been fully repaid and there is no outstanding balance under the Term Loan.

About Liberty Defense

Liberty Defense (NASDAQ: DETX; TSXV: SCAN) provides multi-technology security solutions for concealed weapons detection in high volume foot traffic areas and locations requiring enhanced security such as airports, stadiums, schools, and more. Liberty’s HEXWAVE product, for which the Company has secured an exclusive license from Massachusetts Institute of Technology (MIT), as well as a technology transfer agreement for patents related to active 3D radar imaging technology, provides discrete, modular, and scalable protection to provide layered, stand-off detection capability of metallic and non-metallic weapons. Liberty has also recently licensed the millimeter wave-based, High-Definition Advanced Imaging Technology (HD-AIT) body scanner and shoe scanner technologies as part of its technology portfolio. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions.

For updates and news, please visit the Company website to subscribe to email alerts or follow Liberty Defense on social channels.

FORWARD-LOOKING STATEMENTS
When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although Liberty believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in the forward-looking statements and information in this press release are reasonable, undue reliance should not be placed on them because Liberty can give no assurance that such statements will prove to be correct. Such statements and information reflect the current view of Liberty.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There are a number of important factors that could cause Liberty’s actual results to differ materially from those indicated or implied by forward-looking statements and information, including those appearing in Liberty’s public filings. Such factors include, among others: currency fluctuations; limited business history of Liberty; disruptions or changes in the credit or security markets; results of operation activities and development of projects; project cost overruns or unanticipated costs and expenses; general development, market and industry conditions; and other factors described in Liberty’s public filings. Liberty undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of its securities or its respective financial or operating results (as applicable).

Liberty cautions that the foregoing list of material factors is not exhaustive. When relying on Liberty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Liberty has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of Liberty as of the date of this press release and, accordingly, are subject to change after such date. Liberty does not undertake to update this information at any particular time except as required in accordance with applicable laws.

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

Investor Relations:

For further information about Liberty Defense, please contact:

Kevin O’Dowd
Investor Relations
617-755-4602
kodowd@libertydefense.com

For sales information, please contact:

Ian McNaughton
Senior Director Business Development, Liberty Defense
613-292-3669
imcnaughton@libertydefense.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Does Liberty Defense (DETX) still owe money under its Parabilis financing?

Liberty Defense has no outstanding balance under either the Parabilis credit facility or term loan as of November 13, 2026. All principal and accrued interest under the term loan have been fully repaid.

How is Liberty Defense’s Parabilis credit-facility borrowing capacity calculated?

Borrowing capacity uses 90% of eligible billed receivables, 65% of eligible unbilled receivables and 30% of eligible delivery orders. When invoicing occurs, invoice payments are applied directly to outstanding principal and interest on the credit facility.