VANCOUVER, BC, Nov. 3, 2021 /CNW/ - Freshlocal Solutions Inc.
(TSX: LOCL) (OTC: FLOCF) ("Freshlocal" or the
"Company") is pleased to provide an update on the Company's
efforts to strengthen its access to the liquidity necessary to grow
its business.
Potential Sale of Non-Core Assets – As disclosed in
the Company's Management's Discussion & Analysis for the three
months and nine months ended July 3,
2021 and June 27, 2020
("MD&A"), the Company continues to explore
alternative sources of funding, including the potential sale of
material non-core assets of its business as a source of growth
capital. Freshlocal has engaged Fort Capital Partners as an advisor
to lead the examination of the potential sale of such assets and
other debt financing options. The Company has not established a
definitive timeline to complete this potential sale of material
non-core assets and there can be no assurance this will result in
any transaction. The Company does not expect to make additional
public comment regarding this matter until such disclosure is
appropriate in accordance with applicable securities laws.
Silicon Valley Bank Debt Facility – The Company continues
to make significant progress on finalizing forbearance terms with
Silicon Valley Bank ("SVB") regarding the breach of certain
financial covenants in relation to its debt facility with SVB as
disclosed in the MD&A. SVB has not issued a notice of default
in connection with such breaches, and the Company will provide an
update once a definitive agreement with SVB has been executed.
There can be no assurance that such an agreement will be reached,
and further updates in this regard will be disclosed when
appropriate in accordance with applicable securities laws.
DTC Eligibility in the United
States – Freshlocal's common shares are now
eligible for electronic clearing and settlement through the
Depository Trust Company ("DTC") in the
United States on the OTC under the symbol "FLOCF". DTC
eligibility is expected to simplify the process of trading and
enhance liquidity of Freshlocal's shares in the United States, with an accelerated
settlement period and reduced costs for US-based investors and
brokers.
About Freshlocal Solutions Inc.
Freshlocal Solutions Inc. is a Vancouver-based company that is building a
leadership position in the provision of end-to-end grocery
e-commerce solutions. The Company operates two primary businesses,
FoodX and eGrocery, both of which support its corporate mission to
leverage innovation and technology to create a sustainable and
profitable food system for all. Food-X Technologies Inc. ("FoodX")
is Freshlocal's scalable end-to-end SaaS-based eGrocery Management
Solution (eGMS) which is designed to meet the needs of large and
small grocery retailers while providing profitable unit economics.
The FoodX eGMS is the culmination of over 20 years of experience in
online grocery and the company's proven track record of delivering
efficiently, sustainably and profitably. The Company's consumer
eGrocery business has expanded into one of Canada's largest online grocery companies,
with a focus on delivering fresh, local, organic produce and
groceries, along with exceptional customer experiences. Freshlocal
serves the main urban markets in Alberta and British
Columbia through its brick-and-mortar store locations
operating under the Blush Lane and Be Fresh banners and through
SPUD.ca, the Company's award-winning online marketplace eGrocery
platform. Freshlocal's common shares are listed on the Toronto
Stock Exchange under the symbol "LOCL". Please visit
www.freshlocalsolutions.com.
Notice on Forward Looking Information
Certain statements contained in this press release may be
deemed "forward–looking statements" or
"forward–looking information" within the meaning of
applicable Canadian and U.S. securities laws. Words such as "may",
"will", "would", "could", "expect", "believe", "plan",
"anticipate", "intend", "estimate", "continue", or the negative or
comparable terminology, as well as terms usually used in the future
and the conditional, are intended to identify
forward–looking statements. Forward-looking
statements should not be read as guarantees of future performance
or results, and will not necessarily be accurate indications of
whether, or the times at or by which, such future performance will
be achieved. No assurance can be given that any events anticipated
by the forward–looking statements or information will
transpire or occur, including, but not limited to, the forbearance
agreement as well as the outcome of the potential sale of
Freshlocal's non-core assets and related opportunities.
Forward-looking information is based on information available at
the time and/or management's good-faith belief with respect to
future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond Freshlocal's control. These risks, uncertainties
and assumptions include, but are not limited to, the inability to
complete the sale of non-core assets described in this press
release and those risks described under "Risk Factors" in
Freshlocal's Filing Statement dated April 9,
2021, a copy of which is available on SEDAR at
www.sedar.com, and could cause actual events or results to differ
materially from those projected in any forward-looking statements.
Freshlocal does not intend, nor does Freshlocal undertake any
obligation, to update or revise any forward-looking information
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
SOURCE Freshlocal Solutions Inc.