Tornado Global Hydrovacs Enters Into Credit Facility with TD
July 14 2021 - 7:17PM
Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH:
TSX-V) is pleased to announce that it has entered into a $3,000,000
revolving operating line of credit (the “Operating Line”) and a
$4,875,000 term loan (the “Term Loan”, and together with the
Operating Line, the “TD Facility”) with The Toronto-Dominion Bank
(“TD”). A portion of the TD Facility will be used to repay the
balance of a non-interest bearing vendor take-back mortgage secured
against the Company’s facility located in Red Deer, Alberta (the
“Red Deer Facility”) and the balance of the TD Facility will be
used for general working capital purposes.
Under the conditions of the agreement governing
the TD Facility, the Operating Line bears interest at a floating
rate equal to the prime rate per annum established by TD, currently
at 2.45%, plus 0.75%. Repayments under the Operating Line will be
made on demand. In addition, the Term Loan bears interest at a
fixed rate of 2.83%, with advances repayable, together with
interest, on a monthly basis until maturity.
The TD Facility is secured by a first-ranking
security interest in all of the present and future undertakings,
property and assets of the Company and its subsidiary, Tornado
Global Hydrovacs (North America) Inc., and a first-ranking mortgage
charge on the Red Deer Facility.
“The TD Facility greatly improves our working
capital which will be required to finance an increasingly robust
outlook for demand to purchase Tornado hydrovacs,” said CEO Bill
Rollins. “This financing facility is a follow-on initiative to the
recent announcement where we significantly strengthened our
executive management team by adding Brett Newton as President &
COO. Brett’s 20 years of experience in the hydrovac industry is
expected to also contribute to our bullish outlook for demand for
Tornado hydrovacs.”
About Tornado Global Hydrovacs
Ltd.
The Company designs and manufactures hydrovac
trucks as well as provides heavy duty truck maintenance operations
in central Alberta. It sells hydrovac trucks to excavation service
providers in the infrastructure and industrial construction
markets. Hydrovac trucks use high pressure water and vacuum to
safely penetrate and cut soil to expose critical infrastructure for
repair and installation without damage. Hydrovac excavation methods
are quickly becoming a standard in the North America to safely
excavate in urban areas and around critical infrastructure greatly
reducing infrastructure damage and related fatalities. In China,
the Company’s subsidiary is used principally to source certain
parts to the Company’s North America operations.
For more information about Tornado Global
Hydrovacs Ltd., visit www.tornadotrucks.com or contact:
Bill Rollins |
Brett Newton |
Chief Executive Officer |
President & Chief Operating Officer |
Phone: (403) 204-6333 |
Phone: (416) 522 -6390 |
Email:brollins@tghl.ca |
Email: bnewton@tghl.ca |
Advisory
Certain statements contained in this news
release constitute forward-looking statements. These statements
relate to future events. All statements other than statements of
historical fact are forward-looking statements. The use of the
words “anticipates”, “should”, ‘‘may”, “expected”, “expects”,
“believes” and other words of a similar nature are intended to
identify forward-looking statements. These statements involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Although Tornado
believes these statements to be reasonable, no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. Such statements include statements with
respect to the use of the TD Facility. Actual results could differ
materially from those anticipated in these forward-looking
statements as a result of prevailing economic conditions, and other
factors, many of which are beyond the control of Tornado. The
forward-looking statements contained in this news release represent
Tornado’s expectations as of the date hereof, and are subject to
change after such date. Tornado disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities regulations.
Neither the Exchange nor its Regulation
Service Provider (as that term is defined in policies of the
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Tornado Infrastructure E... (TSXV:TGH)
Historical Stock Chart
From Dec 2024 to Jan 2025
Tornado Infrastructure E... (TSXV:TGH)
Historical Stock Chart
From Jan 2024 to Jan 2025