TORONTO, Oct. 5, 2020 /CNW/ – Newtopia Inc. (“Newtopia“) (TSXV: NEWU), a tech-enabled disease prevention company focused on healthy habit change, today announced the signing of a binding commitment letter for up to C$5 million senior secured operating facility (the “Facility“) with a leading Canadian Schedule 1 Bank (the “Lender“) in partnership with Export Development Canada. The Facility, secured through the Lender’s Technology and Innovation Banking group, is a new credit facility and will be made available upon the fulfillment of a number of customary conditions precedent including but not limited to, Lender’s due diligence, obtaining a guarantee and delivery of customary closing and security related documents. The Facility will be used for general corporate and working capital purposes including to support ongoing execution of Newtopia’s growth strategy.
The Facility, once closed, will have a 24-month term, will bear interest at the Lender’s Prime Lending Rate plus 2.25% per annum, with interest payable monthly. The Facility will be secured by a first ranking security interest over all of the present and future property of Newtopia and is subject to such guarantee and security documents being entered into, as well as customary financial and other covenants for a transaction of this type. In connection with the Facility, the Lender will receive such number of common share purchase warrants as is equal to C$200,000 divided by the exercise price (each, a “Warrant“), exercisable for a period of four years from the completion of the Facility. Each Warrant will be exercisable for one common share at a price per share equal to the closing price of the common shares on the TSX Venture Exchange (the “TSXV“) on the trading day prior to the completion of the Facility subject to the approval of the TSXV.
“We are excited to be partnering with the Technology and Innovation team of a top-tier Canadian Bank” said Jeff Ruby, founder and CEO of Newtopia.” This facility will enable us to continue to innovate, scale and make strategic investments in the business. It is a testament to the tremendous progress we have made to date and our strengthening financial profile. Furthermore, it demonstrates the confidence in the continued growth of telehealth and increased demand for disease prevention solutions. We are grateful for the Lender’s support and look forward to building a long-term relationship.”
Newtopia is a tech-enabled disease prevention company focused on healthy habit change. Newtopia’s platform leverages genetic, social and behavioral insights to create individualized prevention programs with a focus on type 2 diabetes, heart disease, stroke and weight. With a person-centered approach that combines virtual care, digital tools, connected devices and actionable data science, Newtopia delivers sustainable clinical and financial outcomes. Newtopia serves some of the largest nationwide employers and health plans. To learn more, visit newtopia.com.
Forward Looking Information
This news release contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, and forward looking statements, within the meaning of applicable United States securities legislation (collectively, “forward-looking statements“), which reflects management’s expectations regarding Newtopia’s future growth, results from operations (including, without limitation, future production and capital expenditures), performance (both operational and financial) and business prospects and opportunities. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Newtopia’s current views and intentions with respect to future events, based on information available to Newtopia, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that Newtopia believes are reasonable under the circumstances, whether actual results, performance or developments will meet Newtopia’s expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations. These forward-looking statements include, among other things, the completion and advance of the Facility, clients continuing to offer Newtopia’s platform pursuant to agreements entered into, statements relating to Newtopia’s business plans and outlook. Forward-looking statements are not a guarantee and are based on a number of estimates and assumptions management believes to be relevant and reasonable, whether actual results, performance or developments will meet Newtopia’s expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of Newtopia to differ materially from its expectations.. Certain of the “risk factors” that could cause actual results to differ materially from Newtopia’s forward-looking statements in this press release include, without limitation: the termination of contracts by clients, risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in Newtopia’s disclosure documents, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com including Newtopia’s final long form prospectus dated March 30, 2020.
For more information on these risks please see the “Risk Factors” in Newtopia’s final long-form prospectus dated March 30, 2020.Should any factor affect Newtopia’s in an unexpected manner, or should assumptions underlying the forward- looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Newtopia does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and Newtopia undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: please contact: Jeff Ruby, Chief Executive Officer, Newtopia, firstname.lastname@example.org; Media Contact: Rikki Bennie, SVP, Marketing, Newtopia, email@example.com, 1.888.639.8181, ext 208