Newtopia Announces Increase in Growth Facility with Canadian Schedule I Bank to $ 7.5 Million
$ 7.5 million ease of growth the more $ 2.5 million the previously announced private placement of debenture units brings the total financing of the Company’s growth to 10 million dollars
TORONTO, September 29, 2021 / PRNewswire / – Newtopia Inc. (“Newtopia“or the”Society“) (TSXV: NEWU) (OTCQB: NEWUF), a technology-driven habit change provider focused on disease prevention, today announced that it has entered into an agreement (the”Amending Agreement“) with a leading Canadian Schedule I bank (the”Lender“) amending a letter of commitment between the Company and the Lender dated October 2, 2020 (the “Original letter of commitment“and with the Amending Agreement, collectively, the”Amended Letter of Commitment“). The amended letter of commitment provides for an increased revolving credit facility of $ 7.5 million (the “Improved installation“), from $ 5.0 million in the funding obtained previously. This new credit facility, as well as the $ 2.5 million private placement, doubles the amount of growth capital available to the Company for working capital and general business needs.
“We are very pleased to announce this increase in our growth facility and are grateful for the continued support we have received from our banking partner,” said Jeff Ruby, founder and CEO of Newtopia. âThis growing support is a true testament to the tremendous progress we have made to date and reflects the bank’s continued confidence in Newtopia’s ability to successfully execute our long-term growth strategy. “
Mr. Ruby continued, âWe plan to put the extra cash to good use as our business returns to growth in the second half of the year after a 300% increase in welcome kits sold in the second quarter. We will leverage these funds strategically. to: (1) hire additional Inspirators for our growing and highly engaged participant base; (2) expand our sales and marketing teams, to broaden our business development to other health insurance verticals and, above all; (3) continue to advance our one-of-a-kind habit change technology to improve efficiency and generate increased margins. This expanded facility, along with the overall growth of our business, will allow us to continue to deliver significant cost savings and return on investment to our health insurer clients, while working to prevent, reverse and slow the progression of health insurance. physical and mental health risks associated with chronic disease. ”
The terms of the new improved facility are much the same as the original letter of commitment. The main terms of the initial letter of engagement are set out in the Company’s previous press release dated October 5, 2020 and available under Newtopia’s profile on SEDAR at www.sedar.com.
The enhanced facility is subject to the approval of a 50% guarantee by Export Development Canada (“EDC“) through the Export Guarantee Program (“EGP“) which the Company expects over the next few weeks. The facility advanced under the original letter of commitment was subject to a 50% guarantee previously approved by EDC through the EGP. The enhanced facility will continue to be guaranteed by a first-rank security interest in all present and future property of Newtopia.
Newtopia is a technology-based, habit-changing provider focused on disease prevention and lowering the cost of care for health insurers. As a comprehensive care provider, we prevent, reverse and slow the progression of chronic disease while enriching mental health, resilience and overall human performance. Newtopia’s programs leverage genetic, social and behavioral knowledge to create individualized prevention programs focused on type 2 diabetes, heart disease, stroke and weight. With a people-centered approach that combines virtual care, digital tools, connected devices and actionable data science, Newtopia delivers sustainable clinical and financial results. Newtopia serves some of the largest employers and health plans in the country and is currently listed on the Toronto Stock Exchange (TSXV: NEWU) (OTCQB: NEWUF). To learn more, visit newtopia.com, Facebook, LinkedIn or Twitter.
This press release contains forward-looking information and statements, within the meaning of applicable Canadian securities legislation, and forward-looking statements, within the meaning of United States securities legislation (collectively, “forward-looking statements”), which reflects management’s expectations regarding Newtopia’s future growth, results of operations (including, without limitation, production and expenses investment futures), performance (both operational and financial) and business prospects and opportunities. Whenever possible, words such as “predict”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “planned”, “Estimates”, “forecasts”, “anticipates” or “does not anticipate”, “believes”, “intends” and similar expressions or statements that certain actions, events or results “could”, “could “,” would “,” could “or” 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. These statements reflect Newtopia’s current views and intentions with respect to future events, based on information available to Newtopia, and are subject to to certain risks, uncertainties and assumptions es. Important factors or assumptions have been applied to provide forward-looking information. Although forward-looking statements are based on data, assumptions and analyzes that Newtopia believes to be reasonable under the circumstances, whether actual results, performance or developments will meet Newtopia’s expectations and forecasts depends on a certain number of risks and uncertainties that could cause Newtopia’s actual results, performance and financial position to differ materially from its expectations. These forward-looking statements include, but are not limited to, the use of proceeds from the Enhanced Facility, the approval of the 50% guarantee by EDC through the EGP, statements relating to business plans, growth and to Newtopia’s outlook. Forward-looking statements do not constitute a guarantee and are based on a number of estimates and assumptions that management considers relevant and reasonable, that actual results, performance or developments meet Newtopia’s expectations and forecasts depend on a number of risks and uncertainties that could cause Newtopia’s actual results, performance and financial condition to differ materially from its expectations. Some of the “risk factors” that could cause actual results to differ materially from Newtopia’s forward-looking statements in this press release include, but are not limited to: termination of contracts by customers, risks related to COVID- 19, including various recommendations, orders and actions by government authorities to attempt to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelter in place and social distancing, disruption of markets, economic activity, financing, supply chains and sales channels, and a deterioration in general economic conditions, including a possible national or global recession; and other general economic, market and business conditions and factors, including risk factors discussed or referred to in Newtopia’s disclosure documents, filed with the securities regulatory authorities of certain provinces of Canada and available at www.sedar.com, including Newtopia’s final detailed prospectus dated March 30, 2020.
If any factor unexpectedly affects Newtopia, or if the assumptions underlying the forward-looking information prove to be incorrect, actual results or events could differ materially from predicted results or events. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. In addition, Newtopia assumes no responsibility for the accuracy or completeness of this forward-looking information. Forward-looking information included in this press release is made as of the date of this press release, and Newtopia assumes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.