Deveron Announces Forbearance Agreement

Rhea-AI Summary

Deveron has entered into a forbearance agreement with Toronto Dominion Bank regarding an outstanding loan of approximately $26 Million. The agreement, signed on April 25th, 2025, covers both term debt and drawn operating line of credit under a secured credit agreement from May 15, 2023.

Key details of the forbearance:

• The lender agrees to temporarily halt exercising its rights and remedies for certain credit agreement defaults
• Agreement extends until September 30, 2025, or until a Forbearance Termination Event occurs
• Allows Deveron to continue its strategic review process
• Company aims to evaluate alternatives for addressing short-term liquidity needs

The company, which trades on TSX Venture Exchange under symbol FARM, will provide updates when appropriate. This development involves Deveron's subsidiary A&L Canada Laboratories in the credit agreement structure.

Positive

• Lender agrees to temporarily forbear from exercising rights and remedies until September 30, 2025, providing short-term relief
• Company maintains ability to continue strategic review process to evaluate alternatives for liquidity needs

Negative

• Company in default under Credit Agreement with Toronto Dominion Bank
• Significant debt burden of $26 Million in term debt plus drawn operating line of credit
• Company facing short-term liquidity challenges requiring strategic alternatives review
• Forbearance agreement indicates serious financial distress and potential inability to meet loan obligations

News Market Reaction

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On the day this news was published, DVRNF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - April 28, 2025) - Deveron Corp. (TSXV: FARM) ("Deveron" or the "Company") announces that on April 25th, 2025, the Company entered into a forbearance agreement (the "Forbearance Agreement") with Toronto Dominion Bank (the "Lender"), in connection with the repayment of a loan advanced by the Lender, which currently has a principal amount outstanding of approximately $26 Million in term debt and drawn on an operating line of credit (the "Loan"), pursuant to the terms of a secured credit agreement dated May 15, 2023, as amended (the "Credit Agreement"), among the Company, its subsidiary A&L Canada Laboratories, and the Lender. Subject to the terms of the Forbearance Agreement, the Lender has agreed to forbear from exercising its rights and remedies under the Credit Agreement in respect of or arising out of certain defaults under the Credit Agreement, until the earlier of (i) September 30, 2025, or (ii) the occurrence or existence of any Forbearance Termination Event (as defined in the Forbearance Agreement).

The Forbearance Agreement provides for the continuation of the Company's strategic review process, which involves a review and evaluation of strategic alternatives that may be available to the Company to satisfy its short-term liquidity needs.

The Company will provide an update when further disclosure is required or otherwise appropriate.

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.

About Deveron: Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use.

For more information and to join our community, please visit www.deveron.com.

David MacMillan
President & CEO
dmacmillan@deveron.com
Tel: 647-963-2429

This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world-wide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedarplus.ca. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/250044

FAQ

What is the forbearance agreement between Deveron (DVRNF) and Toronto Dominion Bank in April 2025?

On April 25, 2025, Deveron entered a forbearance agreement with Toronto Dominion Bank regarding a $26 Million loan repayment. The bank agreed to delay exercising its rights under the Credit Agreement until September 30, 2025, or until a Forbearance Termination Event occurs.

How much debt does Deveron (DVRNF) owe Toronto Dominion Bank in 2025?

Deveron owes approximately $26 Million to Toronto Dominion Bank, consisting of term debt and drawn amounts from an operating line of credit under a secured credit agreement dated May 15, 2023.

When does Deveron's (DVRNF) forbearance agreement with TD Bank expire?

The forbearance agreement expires on September 30, 2025, or earlier if a Forbearance Termination Event occurs, as defined in the agreement.

What steps is Deveron (DVRNF) taking to address its liquidity issues?

Deveron is conducting a strategic review process to evaluate alternatives that could help satisfy its short-term liquidity needs, as mentioned in the forbearance agreement with Toronto Dominion Bank.

What happens if Deveron (DVRNF) defaults on the TD Bank forbearance agreement?

If a Forbearance Termination Event occurs, Toronto Dominion Bank can exercise its rights and remedies under the Credit Agreement, though specific consequences weren't detailed in the press release.