mCloud Signs Commitment Letter for $5 Million Operating Line from ATB Financial
May 18, 2021
mCloud Technologies Corp. (TSX-V: MCLD) (OTCQB: MCLDF) ("mCloud" or the "Company"), a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence ("AI") and analytics, is pleased to announce it has executed a commitment letter with ATB Financial ("ATB") for a $5 million secured operating line (the "ATB Facility"). Proceeds of the ATB Facility will be used to repay amounts owed by the Company to HSBC Bank Canada and for general working capital purposes.
The ATB Facility is a demand operating line bearing interest at a floating rate equal to the prime rate per annum established by ATB from time to time for commercial loans denominated in Canadian dollars made by ATB in Canada, plus an applicable margin rate based on the senior debt to EBITDA ratio of the Company at the time of determination. Repayments under the ATB Facility will be made on a monthly interest-only basis until demand. The ATB Facility is secured against certain assets of the Company and its principal subsidiaries.
"Closing this new credit facility with ATB demonstrates the confidence lenders and large shareholders have in mCloud's current and long-term outlook as we leverage the relationships we are cultivating in the province of Alberta," said Russ McMeekin, mCloud President and CEO. "As pandemic restrictions ease this summer, we plan on coupling the ATB Facility with Canadian-based export initiatives expected to help us rapidly grow our footprint internationally in target markets including the Middle East and Southeast Asia."
The Company noted since signing a Memorandum of Understanding with Invest Alberta Corporation in February, it had made substantial progress in advancing its Environmental, Social, and Governance ("ESG") agenda, specifically highlighting ongoing success in driving the early adoption of its new AssetCare™ AI-powered fugitive gas emission and leak detection solution in cooperation with private companies and provincial agencies deploying new technologies to decarbonize and reduce CO2e emissions across the province.
"The changes we have made to our capital structure, coupled with the demand we are seeing for AssetCare solutions that help our customers in Canada and around the world act on ESG issues, positions mCloud very well to sustain the Company's long-term growth and maximize shareholder value," McMeekin added.
Completion of the ATB Facility is subject to satisfaction of customary closing conditions and receipt of all applicable consents.
About mCloud Technologies Corp.
mCloud is unlocking the untapped potential of energy intensive assets with AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud's AI-powered AssetCare™ platform, mCloud offers complete asset management solutions for commercial buildings, renewable energy, healthcare, heavy industry, and connected workers. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance.
Headquartered in Canada with offices worldwide, the mCloud family includes an ecosystem of operating subsidiaries that deliver high-performance IoT, AI, 3D, and mobile capabilities to customers, all integrated into AssetCare. With over 100 blue-chip customers and more than 59,000 assets connected in thousands of locations worldwide, mCloud is changing the way energy assets are managed.
mCloud's common shares trade on the TSX Venture Exchange under the symbol MCLD and on the OTCQB under the symbol MCLDF. mCloud's convertible debentures trade on the TSX Venture Exchange under the symbol MCLD.DB. For more information, visit www.mcloudcorp.com.
For further information: Wayne Andrews, RCA Financial Partners Inc., T: 727-268-0113, email@example.com; Chantal Schutz, Chief Financial Officer, mCloud Technologies Corp., T: 866-420-1781