Eddy Smart Home Solutions Ltd. Secures $1 Million Working Capital Loan Facility

Rhea-AI Summary

Eddy Smart Home Solutions (TSXV: EDY) has secured a $1 million revolving credit facility through a loan agreement with a non-arm's length private lender. The facility carries a 12% annual interest rate and has a two-year maturity term. The company plans to utilize the proceeds primarily for inventory purchases to fulfill its contracted revenue backlog. The facility includes an option for a $500,000 expansion, potentially reaching $1.5 million total, based on receivables growth and increased inventory requirements.

Positive

• Secured $1M working capital facility to support inventory purchases
• Option to expand facility by additional $500K based on growth metrics
• No fees associated with the facility arrangement

Negative

• High interest rate of 12% per annum
• Non-arm's length transaction indicates related party lending
• Need for working capital financing suggests potential cash flow constraints

Toronto, Ontario--(Newsfile Corp. - February 11, 2025) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company"), is pleased to announce that it has entered into a loan agreement with a non-arm's length private lender (the "Lender") for a $1 million revolving credit facility (the "Facility").

The Facility bears interest at a rate of 12% per annum and will mature in two years. There were no fees paid in connection with the Facility. The Company intends to use the net proceeds from the Financing largely for inventory purchases, to satisfy its contracted revenue backlog. This Facility can be increased at the request of the Company by an additional $500,000, for an aggregate amount of $1,500,000, based on growth in receivables and increased inventory.

ABOUT EDDY

Eddy is a leading North American provider and developer of smart water metering products and monitoring services for residential and commercial properties. Eddy's solutions help property owners and developers protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.

For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2023, and 2022, available on Eddy's SEDAR profile at www.sedar.com.

FORWARD-LOOKING INFORMATION AND STATEMENTS

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the company's most recent management discussion and analysis under "Risks and Uncertainties," available at www.sedar.com. Eddy undertakes no obligation to update these statements, except as required by law.

Neither 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 release.

For further information, please contact:

Mark Silver
Executive Chairman and Chief Executive Officer
Tel: 416.221.8998
Email: ir@eddysolutions.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240487

FAQ

What are the terms of ESHSF's new $1M credit facility?

The facility has a 12% annual interest rate, two-year maturity, and can be expanded by an additional $500,000 based on growth metrics.

How will ESHSF use the proceeds from the $1M loan facility?

The company plans to use the proceeds primarily for inventory purchases to satisfy its contracted revenue backlog.

What is the maximum potential size of ESHSF's new credit facility?

The facility can potentially reach $1.5 million, consisting of the initial $1 million plus an additional $500,000 based on receivables growth and increased inventory.

What interest rate is ESHSF paying on its new credit facility?

The credit facility bears interest at a rate of 12% per annum.