Zedcor Inc. Announces Expansion of Credit Facility to Fund North American Growth Plans

Calgary, Alberta--(Newsfile Corp. - June 6, 2023) - Zedcor Inc. (TSXV: ZDC) (the "Company" or "Zedcor") is pleased to announce that it has entered into an amended and restated Commitment Letter (the "Amended Commitment Letter") with its primary lender which increases its revolving evergreen equipment financing facility from $6.0 million to $15.0 million. This is an expansion of $9.0 million and, unless market conditions justify an increase to the Company's capital plans for 2023, provides the Company with sufficient access to capital to complete its 2023 capital asset program. This new financing will allow the Company to significantly increase its MobileyeZ security tower fleet as it grows its geographic footprint across North America and continues to provide customers with a technology based physical security solution.

Todd Ziniuk, President and CEO of Zedcor, stated, "This additional financing will help us execute our expansion plans for 2023 and the first half of 2024. We are seeing nearly full utilization for our MobileyeZ security tower fleet and demand for our services continues to be robust. Our goal is to ensure we have equipment available to provide security solutions to our customers. Zedcor's expansion across Canada is continuing, demand for our MobileyeZ security towers in Eastern Canada remains strong as we allocate more of our assets to that region and our planned US expansion in on track for the second half of 2023. The additional financing positions us well to meet our customer's demand for MobileyeZ security towers."

Zedcor currently has $5.8 million drawn on its equipment financing facility and the Amended Commitment Letter provides Zedcor with an additional $9.2 million which is immediately available to the Company; as monthly payments are made on the equipment financing facility, Zedcor may borrow back up to the $15.0 million maximum. The Company anticipates it will draw down on the availability during the rest of calendar 2023 and into the first half of 2024 to fund its capital program for the purchase of additional MobileyeZ security towers. The Company also confirms that it anticipates exiting 2023 with a fleet size of approximately 900 security towers located across North America.

The Amended Commitment Letter has the following amendments to the terms and conditions:

• 100% financing on the purchase price of new equipment (previously 75% financing on the purchase of new equipment);
• $1.5 million of the equipment financing will be available for equipment located outside of Canada;
• Allowance for payment of dividends, unfinanced capital expenditures and payments of principal and interest on subordinated indebtedness (collectively, "Corporate Distributions") provided that the Company remains in compliance with its lending covenants;
• Covenants will be calculated quarterly on a trailing four quarter basis starting with the quarter ended June 30, 2023 and the Company's debt servicing covenant will be amended as follows:
  • Debt servicing covenant before Corporate Distributions must be greater than or equal to 1.25:1.00 quarterly, calculated on a trailing four quarter basis;
  • Debt servicing covenant after Corporate Distributions must be greater than or equal to 1.00:1.00 quarterly, calculated on a trailing four quarter basis;

In addition to the changes in the equipment financing facility, the Company's borrowing base on its authorized overdraft facility will be expanded to include up to 50% valuation of clearly defined non-capital inventory up to a maximum of $1.0 million. The total limit of the authorized overdraft facility remains unchanged at $3.0 million.

The Company's financing agreement remains secured with a general security agreement, which provides for a first charge security interest over the Company's present and future personal property. The Amended Commitment Letter also retains standard non-financial provisions under the previous financing agreements.

About Zedcor Inc.

Zedcor Inc. is a Canadian public corporation and is currently the parent company to Zedcor Security Solutions Corp. Zedcor is a technology enabled business that is changing how physical security services are provided to businesses. Zedcor operates throughout Canada with branches in British Columbia, Alberta, Manitoba and Ontario. The Company has three main service offerings to customers across all market segments: 1) surveillance and live monitoring through its proprietary MobileyeZ security towers; 2) surveillance and live monitoring of fixed site locations; and 3) security personnel.

The Company operates a fleet of over 600 proprietary MobileyeZ security towers, equipped with high resolution, technology-based cameras, and monitors fixed site locations for customers across various industries. Video from security towers and fixed site locations is streamed to the Company's central monitoring station where video alarms are live verified and responded to based on customer requirements. Zedcor also offers high level security guard services to enterprise level customers who are looking to supplement video-based security for valuable, high risk, or mission critical operational assets.

Forward-Looking Statements and Information

Certain statements included in this press release constitute forward-looking statements or forward-looking information. Forward-looking statements or information can be identified by terminology such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "budget", "should", "project", or similar words suggesting future outcomes or expectations. In particular, forward-looking statements and information contained in this press release, include, but are not limited to, the expansion of Zedcor's Security and Surveillance business, fleet expansion, marketing of security services and expansion of Zedcor's service offering to other geographic regions. Although the Company believes that the expectations implied in such forward-looking statements or information are reasonable, undue reliance should not be placed on these forward-looking statements or information because the Company can give no assurance that such statements or information will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of assumptions about the future and uncertainties, including current forecasts and utilization. Although management of the Company believes these expectations and assumptions reflected in these forward-looking statements or information to be reasonable, there can be no assurance that any forward-looking statements or information will be proved to be correct, and actual results may differ materially from those anticipated in such statements or information. For this purpose, any statements or information contained herein that are not statements or information of historical fact may be deemed to be forward-looking statements or information and readers should not place undue reliance on such forward-looking statements or information. The forward-looking statements or information contained in this press release are made as of the date hereof and the Company assumes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new contrary information, future events or any other reason, unless the Company is required by any applicable securities laws. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.

For further information contact:

Todd Ziniuk
President & Chief Executive Officer
P: 403-930-5430
E: tziniuk@zedcor.ca

Amin Ladha
Chief Financial Officer
P: 403-930-5430
E: aladha@zedcor.ca

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.

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