MARCH 18TH, 2017
Avcorp Extends Credit Facilities to US$58 Million
VANCOUVER, March 17, 2017 /PRNewswire/ – Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) is pleased to announce that it has entered into an agreement to extend its existing credit facilities with its current lender to US$58 million, up from CAD$21 million. The credit facility extension supports the Company’s recent efforts to re-structure operations, win long-term production contracts and strengthen its relationships with key customers.
The current credit facilities will be extended in increments through 2017 and 2018, with maturity on June 30, 2020, subject to definitive loan documentation and required consents. The credit facility expansion will provide working capital for the Company’s operations in Delta British Columbia, Burlington Ontario and Gardena California including the funding of operating expenses in connection with all customer production lines and supplier payables. The extension of the credit facilities will also provide required capital to ensure that Avcorp continues to play a key role in the supply chain of its valued customers.
It is anticipated that the definitive loan documentation will be completed before the end of the second quarter 2017.