TORONTO, July 31, 2024 /CNW/ -- Sabio Holdings Inc. (TSXV: SBIO) (OTCQB: SABOF) (the "Company" or "Sabio"), a California-based ad-tech company that specializes in delivering highly targeted ads, insights, and services in ad-supported streaming to top Fortune 100 brands, is pleased to announce the closing of a new credit facility pursuant to the terms of a credit agreement between its U.S. operating subsidiaries and SLR Digital Finance ("SLRDF").
The facility replaces the Company's existing credit facility with Avidbank and provides for a US$10 million senior-secured revolving credit facility at an interest rate of the greater of: (i) Prime rate plus 2.15%, or (ii) 8.5%. The facility has a three (3)-year term and is secured against all of the assets of the Company. Advances made under the facility will be available up to an amount equal to: (a) 85% of eligible accounts receivable of Sabio, Inc., AppScience, Inc. and FWD Tech Inc., the Company's U.S. subsidiaries; plus (b) the lesser of (i) 70% of the aggregate outstanding amount of eligible unbilled receivables or (ii) $3,000,000.
"We are pleased to partner with the team at SLR Digital Finance. As a former lender to Sabio under an earlier iteration, SLR has a deep understanding of our business and the broader digital media landscape," said Sajid Premji, Sabio's Chief Financial Officer. "We believe the new facility will provide Sabio with greater balance sheet flexibility at a competitive cost of capital. It will also fortify our balance sheet through several advantages over our previous arrangement, which includes increased liquidity and long-term stability through a multi-year term."
"Sabio has been the leader in ad-supported streaming television for many years, and we're thrilled to be partnering with them again," said Randy Mitzman, Managing Director at SLRDF. "Our flexible structure will allow them to be well positioned for future growth in a very competitive market."
Amendment to Articles of Incorporation and By-laws
Sabio is also pleased to advise that it has, further to approval of the shareholders at the annual general and special meeting held June 20, 2024, amended its Articles of Incorporation (the "Amended Articles") and By-laws (together with the Amended Articles, the "Constating Documents"). The Amended Articles are expected to facilitate a more streamlined conversion between the Company's common shares and restricted voting shares, and the amendment to the Company's By-laws are expected to establish a clear framework for nominating directors in connection with any annual or special meeting of shareholders of the Company. The Constating Documents have been approved by the TSX Venture Exchange and filed under the Company's profile on SEDAR+.
About Sabio
Sabio Holdings (TSXV: SBIO, OTCQB: SABOF) is a technology and services leader in the fast-growing ad-supported streaming space. Its cloud-based, end-to-end technology stack works with top blue chip, global brands and the agencies that represent them to reach, engage, and validate streaming audiences. Sabio Holdings' companies consist of Sabio – a demand-side platform (DSP) powered through our proprietary ad-serving technology; App Science? – a non-cookie-based software as a service (SAAS) analytics and insights platform with AI natural language capabilities; and Sabio SSP (formerly known as Vidillion) – an ad-supported streaming supply-side platform (SSP) that includes server-side ad-insertion (SSAI) technology.
SLR Digital Finance is the leading asset-based lender serving digital media companies looking for an alternative to traditional bank financing. SLRDF offers factoring and asset-based loans up to $150 million and finds ways to provide borrowers with maximum availability and flexibility. SLRDF serves advertising technology companies, publishers, ad networks, creative studios, agencies, and digital platforms. SLRDF is a wholly owned subsidiary of SLR Business Credit, an SLR Investment Corp. company [NASDAQ: SLRC].
Forward-Looking Statements
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, which is often, but not always, identified by the use of words such as "believes," "anticipates," "plans," "intends," "will," "should," "expects," "continue," "estimate," "forecasts," or the negative thereof and other similar expressions. All statements herein other than statements of historical fact constitute forward-looking information including, but not limited to, statements in respect of: balance sheet and cash flow management and expectations regarding greater balance sheet flexibility and improved balance sheet position, and the expected effects of the amendments to the Constating Documents. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The Company undertakes no obligation to comment on analyses, expectations, or statements made by third parties in respect of the Company, its securities, or financial or operating results (as applicable). Although the Company believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors, and assumptions concerning future events that may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the effect of the macro-economic environment adversely impacting the Company's business more than anticipated, unexpected funding and cash flow management difficulties, and the other risk factors disclosed in the Company's annual information form (AIF), which is publicly available on SEDAR+ atwww.sedarplus.ca. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information: Sajid Premji, Chief Financial Officer, [email protected], Phone: 1.844.974.2662; Aideen McDermott, Investor Relations, [email protected]
