Nepra Foods Inc. Secures up to $1,000,000 in Purchase Order Financing and a Further $1,750,000 in Accounts Receivable Financing

Rhea-AI Summary

Nepra Foods Inc. (CSE:NPRA, OTC PINK:NPRFF) has secured $1,000,000 USD in inventory/purchase order financing and $1,750,000 USD in accounts receivable financing from Gateway Trade Funding. The financing allows 90% of gross value of outstanding purchase orders and 80% of face value of accounts receivable to be financed. As part of this deal, Nepra has:

1. Retired its SBA loan with a principal balance of $172,500 USD
2. Modified its equipment lease agreement, reducing monthly obligations by $35,000 USD
3. Committed to pay $3,700 USD monthly until March 1, 2027 for production equipment

These changes are expected to improve Nepra's cash management and support growth opportunities.

Positive

• Secured $2.75 million in non-dilutive financing
• Retired SBA loan of $172,500 USD
• Reduced monthly equipment lease obligations by $35,000 USD
• Total savings of $469,000 USD over the term of the new lease agreement
• Improved cash management capabilities

Negative

• Directors and senior officers personally guaranteed the financing
• Standard commercial interest rates and transaction fees apply to the financing facilities

VANCOUVER, BC / ACCESSWIRE / September 25, 2024/ Nepra Foods Inc. (CSE:NPRA)(FSE:2P6)(OTC PINK:NPRFF) ("Nepra Foods" or the "Company"), is pleased announce that the Company has successfully secured a total of $1,000,000USD in inventory/purchase order financing and a further $1,750,000USD in accounts receivable financing from Gateway Trade Funding ("Gateway") located in Brea, California. As an integral part of the financings 90% of the gross value of all outstanding purchase orders are financeable and when converted to account receivable 80% of the face value of the accounts receivable become financeable.

Standard commercial interest rates and transaction fees are applicable to these financing facilities. Billy Hogan and David Wood both directors and senior officers of the Company have jointly and severally guaranteed the outstanding which may be due from time to time to Gateway. Neither of the financings have any conversion features associated with them.

Gateway Trade Funding has been providing purchase order financing to companies of all ages, from start-ups to well-established companies, for over 18 years. The financing will allow the Company to fulfill sales opportunities by providing incremental growth capital on a non-dilutive basis, thus a benefit for the Company's shareholders.

As an integral part of closing the Gateway funding noted above, the Company has in part utilized a portion of the initial advances to retire its SBA loan with a principal outstanding balance of $172,500USD,000.

Further and as part of finalizing the Gateway funding, the Company modified its lease agreement for various production and manufacturing equipment. In the past few months, the Company purchased several pieces of equipment outright from the lease totaling $300,000USD, thus reducing the amount due on the equipment lease. The Company committed thereafter to pay $3,700USD monthly until March 1, 2027. The agreement finances production equipment the Company uses in its blending, hemp flour production and pasta manufacturing. The renegotiated terms reduce the monthly cash obligations of the Company by $35,000USD per month or a total savings of $469,000USD over the term of the new agreement.

Securing the purchase order and inventory financing will enable the Company to manage its cash requirements for inventory and the commercial terms necessary to remain competitive for its customers. Retiring the SBA loan and renegotiating the equipment lease will have a material positive impact on cash management as the Company continues to grow its base of core customers.

"The newly established inventory/purchase order and receivable financing, totaling $2.75 million, highlights NEPRA's improved financial health by reducing debt and expenses. Additionally, this financing provides an alternative means to secure necessary inventory, supporting future growth. I am encouraged by these changes, which are fortifying our solid business model and helping address the growing opportunities in the marketplace, says Billy Hogan, NEPRA CEO."

About Nepra Foods Inc.
Nepra Foods is a specialty food company focused on innovative and proprietary allergen and gluten-free food ingredient technologies. The company supports food manufactures globally with formulations, ingredients and technical support for the production of the next generation of healthy, nutritious foods. For more information on the company, visit www.neprafoods.com.

ON BEHALF OF THE BOARD OF DIRECTORS
David Wood, Chief Operating Officer and Interim CFO
investors@neprafoods.com

Investor Relations Toll-free (844) 566-1917

The CSE has neither approved nor disapproved the contents of this news release. The CSE does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This news release contains statements and information that, to the extent that they are not historical fact, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include, without limitation, statements related to the Conversion Transaction, including the timing and completion thereof, and other statements regarding the future developments and the business and options of the Company. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, but not limited to, statements relating to the Company's financial performance, business development, results of operations, and those listed in filings made by the Company with the Canadian securities regulatory authorities (which may be viewed at www.sedarplus.ca). Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.

SOURCE: Nepra Foods

View the original press release on accesswire.com

FAQ

How much financing did Nepra Foods (NPRFF) secure from Gateway Trade Funding?

Nepra Foods secured $1,000,000 USD in inventory/purchase order financing and $1,750,000 USD in accounts receivable financing from Gateway Trade Funding, totaling $2,750,000 USD.

What percentage of purchase orders and accounts receivable can Nepra Foods (NPRFF) finance?

Nepra Foods can finance 90% of the gross value of outstanding purchase orders and 80% of the face value of accounts receivable.

How did Nepra Foods (NPRFF) modify its equipment lease agreement?

Nepra Foods reduced its monthly equipment lease obligations by $35,000 USD and committed to pay $3,700 USD monthly until March 1, 2027, resulting in total savings of $469,000 USD over the term of the new agreement.

What loan did Nepra Foods (NPRFF) retire as part of the Gateway funding?

Nepra Foods retired its SBA loan with a principal outstanding balance of $172,500 USD using a portion of the initial advances from the Gateway funding.