SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Yerbaé Brands Corp. (the “Company” or “Yerbaé”) announces today that it has secured a new accounts receivable and inventory line of credit of US$2,500,000 (the “Debt Facility”) from Oxford Commercial Finance, a Michigan banking corporation (“Oxford Bank”), through its Delaware subsidiary Yerbaé LLC. The Debt Facility replaces the Company’s prior credit agreement and is an upgrade to bank debt, and will help the Company fuel its growth and support its ongoing operations.
“We are delighted to have secured this new Debt Facility from Oxford Bank,” said Todd Gibson, CEO of Yerbaé. “This facility will provide us with additional financial resources to help expand our product line, reach more customers and continue to deliver healthy alternative energy solutions. We see this new Debt Facility as a testament to our growth potential.”
The Debt Facility is structured as a revolving line of credit, which means that the Company can draw down funds as needed, and only pay interest on the amount borrowed.
“We’re excited to have secured this new Debt Facility from Oxford Bank, as it will allow us to accelerate our growth plans and continue providing our customers with the best possible healthy energy beverage solutions,” said Bill Finn, CFO of Yerbaé. “We’re looking forward to working closely with Oxford Bank as we execute our growth strategy and drive value for our shareholders.”
The Debt Facility will be used to fund the Company’s growth initiatives, including investments in product innovation, marketing, and distribution. It will also be used to support the Company’s ongoing operations and working capital requirements. The Debt Facility is secured by a security interest in all assets of Yerbaé, including a first security interest in Yerbaé’s accounts receivable and inventory.
About Yerbaé Brands Corp.
Founded in 2017 by Todd Gibson and Karrie Gibson, Yerbaé Brands Corp., (TSXV: YERB.U) is disrupting the energy beverage marketplace with great tasting, zero sugar, zero calorie beverages, while using plant‐based ingredients that are designed to meet the needs of the wellness forward consumer. Harnessing the power of nature, Yerbaé’s celebrity ingredient, Yerba Mate, contains caffeine and has 196 active compounds, including vitamins, minerals and nutrients.
By combining Yerba Mate, a South American herb with its premium ingredients and flavors, Yerbaé provides consumers with a no compromise energy solution. All Yerbaé energy beverages are zero calorie, zero sugar, non‐GMO, and gluten free.
Find us @DrinkYerbae on Instagram and Facebook.
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements relating to the Company. Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including, without limitation, the intended use of proceeds therefrom. Forward-looking statements are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. The material assumptions supporting these forward-looking statements include, among others, that the demand for the Company’s products will continue to significantly grow; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that the Company’s brokers and distributors will continue to sell and prioritize the Company’s products; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company’s growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of energy drinks; the fact that consumers may not embrace and purchase any of the Company’s products; additional competitors selling energy drinks reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the potential for supply chain interruption due to factors beyond the Company’s control; the fact that there may be increases in costs and/or shortages of raw materials and/or ingredients and/or fuel and/or costs of co-packing; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace energy drink products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers, brokers, and distributors; and competition in the industry in which the Company operates and market conditions.
These forward-looking statements are made as of the date of this news, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this presentation are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in greater detail under “Risk Factors” in the Company’s Information Circular dated November 13, 2022 available on SEDAR at www.sedar.com.
Neither 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.