Goodfood Announces New $46 Million Syndicated Bank Financing, Increasing Availability of Non-Dilutive Capital for Growth and Working Capital

MONTREAL, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: FOOD), a leading online grocery company in Canada, announced the closing of new bank financing totalling $46 million, including a $27.5 million revolving facility (up from $10 million), a $12.5 million term loan facility, and $6 million in additional short-term financing. The financing transaction was led by Desjardins Capital Markets with participation from Investissement Québec.

Goodfood will use the funds to support the continued growth of the Company through expansion and automation capital expenditures, refinancing of existing credit facilities and general corporate purposes. The facilities feature flexible and improved financial conditions, including variable interest rates of banker’s acceptance rate plus 250 basis points, and come to maturity in November 2023.

“We are thrilled to have gained access to increased debt financing to support our strategic plan. Combined with our cash balance, we now have access to more than $125M of liquidity, providing great flexibility to propel the business in its next phase of growth,” said Philippe Adam, Chief Financial Officer of Goodfood. “This non-dilutive financing with an attractive cost of capital also provides us with the means to continue to strategically manage our capital allocation and working capital,” concluded Mr. Adam.

“As we continue to penetrate and gain market share in the online grocery industry, we are very pleased to count on the support of tremendous and supportive partners such as Desjardins and Investissement Québec,” added Jonathan Ferrari, Chief Executive Officer of Goodfood. “We are excited by the opportunity ahead of us and the favorable trends stemming from the acceleration of online grocery and meal solutions adoption by Canadians. With this financing transaction and our consistently strong execution, we are ideally positioned to cement our leadership in this high-growth market,” concluded Mr. Ferrari.

ABOUT GOODFOOD

Goodfood (TSX:FOOD) is a leading online grocery company in Canada, delivering fresh meal solutions and grocery items that make it easy for members from across Canada to enjoy delicious meals at home every day. Goodfood’s mission is to make the impossible come true, from farm to kitchen, by enabling members to complete their weekly meal planning and grocery shopping in minutes. Goodfood members have access to a unique selection of online products as well as exclusive pricing made possible by its world class direct-to-consumer fulfilment ecosystem that eliminates food waste and costly retail overhead. The Company’s main production facility and administrative offices are based in Montreal, Québec, with five additional production facilities located in the provinces of Québec, Ontario, Alberta, and British Columbia. A seventh production facility located in the province of Ontario is currently under construction and is scheduled to commence operations in 2021. As at August 31, 2020, Goodfood had 280,000 active subscribers. www.makegoodfood.ca