H2O Innovation Announces Closing of a $55 M Credit Facility with National Bank of Canada

Rhea-AI Summary

H2O Innovation has secured a new credit facility agreement with National Bank of Canada, increasing it to $55 million and extending the term to December 1, 2024. This facility will fully repay $14.5 million in outstanding term loans, with the remaining funds allocated for general corporate needs, including working capital and acquisitions. CEO Frédéric Dugré emphasized that this new funding supports the company’s operations and acquisition strategy outlined in its 3-Year Strategic Plan.

Positive

• Increased revolving credit facility to $55 million.
• Extended facility term to December 1, 2024.
• Supports acquisition strategy and operational flexibility.

Negative

• None.

QUEBEC CITY, Dec. 06, 2021 (GLOBE NEWSWIRE) -- (TSXV: HEO) – H₂O Innovation Inc. (“H₂O Innovation” or the “Corporation”) is proud to announce that it has entered into an agreement with National Bank of Canada to increase its revolving credit facility to $ 55 M. In addition, the term of this facility has been extended to December 1, 2024.

The revolving facility is used to repay entirely the outstanding term loans with National Bank of Canada for an amount of approximately $14.5 M and the remaining amount is available for general corporate purposes such as working capital, permitted acquisitions and capital expenditures.

“This new credit facility demonstrates the continued support of National Bank of Canada. It will provide greater flexibility to the Corporation’s operations and will support the acquisition strategy described in our 3-Year Strategic Plan”, stated Frédéric Dugré, President and Chief Executive Officer of H₂O Innovation.

Prospective disclosure
Certain statements set forth in this press release regarding the operations and the activities of H₂O Innovation as well as other communications by the Corporation to the public that describe more generally management objectives, projections, estimates, expectations or forecasts may constitute forward-looking statements within the meaning of securities legislation. Forward-looking statements concern analysis and other information based on forecast future results, performance and achievements and the estimate of amounts that cannot yet be determined. Those forward-looking statements, based on the current expectations of management, involve a number of risks and uncertainties, known and unknown, which may result in actual and future results, performance, and achievements of the Corporation to be materially different than the said forward-looking statements, such as the reimbursement of the revolving facility as per the term of the Credit Agreement and the completion of the acquisition strategy proposed in the Corporation’s 3-Yeat Strategic Plan. Information about the risk factors to which the Corporation is exposed is provided in the Annual Information Form dated September 27, 2021 available on SEDAR (www.sedar.com).

About H₂O Innovation 
Innovation is in our name, and it is what drives the organization. H₂O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers. The Corporation’s activities rely on three pillars: i) Water Technologies & Services (WTS) applies membrane technologies and engineering expertise to deliver equipment and services to municipal and industrial water, wastewater, and water reuse customers, ii) Specialty Products (SP) is a set of businesses that manufacture and supply a complete line of specialty chemicals, consumables and engineered products for the global water treatment industry, and iii) Operation & Maintenance (O&M) provides contract operations and associated services for water and wastewater treatment systems. Through innovation, we strive to simplify water. For more information, visit www.h2oinnovation.com.

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

Source:
H₂O Innovation Inc.
www.h2oinnovation.com

Contact:
Marc Blanchet
+1 418-688-0170
marc.blanchet@h2oinnovation.com

FAQ

What is the amount of the new credit facility for H2O Innovation (HEOFF)?

H2O Innovation has increased its credit facility to $55 million.

When does the new credit facility for H2O Innovation (HEOFF) expire?

The new credit facility expires on December 1, 2024.

What will the new credit facility for H2O Innovation (HEOFF) be used for?

The facility will be used to repay $14.5 million in loans and for general corporate purposes.

Who is H2O Innovation's banking partner for the revolving credit facility (HEOFF)?

The banking partner is National Bank of Canada.