Quorum Announces Early Debt Pay Down of $1.6 million of BDC Capital Facility
November 14 2023 - 7:59AM
Quorum Information Technologies Inc. (TSX-V: QIS) (OTC Pink: QIFTF)
(“Quorum”), a North American SaaS Software and Services company
providing essential enterprise solutions that automotive
dealerships and Original Equipment Manufacturers (“OEMs”) rely on
for their operations, announced today it has made a prepayment of
$1.6 million in principal and interest on its BDC Capital Inc Loan
Facility (“BDC Capital Facility” or “Facility”).
The BDC Capital Facility was obtained in 2019 to
finance the 2018 purchase of DealerMine and the 2022 purchase of
Accessible Accessories. The Facility was restructured in 2022,
which included replacing the original Facility with a Mezzanine
loan and a Cash Flow loan. The Mezzanine loan has a floating cash
interest rate of 10.15% per annum and an additional accrued
interest of 2.65% that is due and payable on August 15, 2027, the
date of maturity. The Cash Flow loan has a floating cash interest
rate of 9.80% per annum with principal payments commencing August
15, 2024 and a maturity date of August 15, 2027.
As a result of the prepayment, the Company
reduced the outstanding principal amount under the BDC Capital
Facility by $1.5 million from $11.6 million to $10.1 million,
resulting in $0.2 million in annual interest expense savings. The
debt prepayment was funded with excess cash on hand. Quorum
continues to have access to $4.0 million in additional funding
through the BDC Capital Facility for potential future
acquisitions.
“We are pleased to pay down a portion of the BDC
Capital Facility early,” stated Maury Marks, President and CEO of
Quorum. “Following the second quarter where we reported Adjusted
EBITDA1 of $1.7 million and a cash balance of $4.9 million,
Quorum is in a strong financial position to continue the process of
paying down the BDC Capital Facility.”
About Quorum Information Technologies
Inc.
Quorum is a North American SaaS Software and
Services company providing essential enterprise solutions that
automotive dealerships and Original Equipment Manufacturers
(“OEMs”) rely on for their operations, including:
- Quorum’s
Dealership Management System (DMS), which automates,
integrates, and streamlines key processes across departments in a
dealership, and emphasizes revenue generation and customer
satisfaction.
-
DealerMine CRM, a sales and service Customer
Relationship Management (“CRM”) system and set of Business
Development Centre services that drives revenue into the critical
sales and service departments in a dealership.
-
Autovance, a modern retailing platform that helps
dealerships attract more business through Digital Retailing,
improve in-store profits and closing rates through its desking tool
and maximize their efficiency and CSI through Autovance’s F&I
menu solution.
-
Accessible Accessories, a digital retailing
platform that allows franchised dealerships to efficiently increase
their vehicle accessories revenue.
- VINN
Automotive, a premier automotive
marketplace that streamlines the vehicle research and purchase
process for vehicle shoppers while helping retailers sell more
efficiently.
Contacts:
Maury MarksPresident and Chief Executive
Officer403-777-0036Maury.Marks@QuorumInfoTech.com
Marilyn BownChief Financial
Officer403-777-0036Marilyn.Bown@QuorumInfoTech.com
Forward-Looking Information
This press release may contain certain
forward-looking statements and forward-looking information
(“forward-looking information”) within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but
not always, identified by the use of words such as “anticipate”,
“believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”,
“estimate”, “expect”, “may”, “will”, “project”, “should” or similar
words suggesting future outcomes. Quorum believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, which may cause Quorum’s actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking information.
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) has reviewed this release and
neither accepts responsibility for the adequacy or accuracy of this
release.
_________________________1 Adjusted EBITDA – Net income (loss)
before interest and financing costs, taxes, depreciation,
amortization, stock-based compensation, foreign exchange gains and
losses, one-time acquisition-related expenses and restructuring
fees.
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