TORONTO, ONTARIO--(Marketwired - July 28, 2016) - Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX VENTURE:DLS), is pleased to announce the expansion of its credit facilities and an update with respect to the exercise of the Company's common share purchase warrants.
Today the Company closed a securitization facility with a major Canadian life insurance company providing $75 million in funding for the Company's lease and loan products.
The Company also closed a $20 million funding facility with another financial institution.
The Company renewed an existing securitization facility with a Schedule 1 Bank. The Company typically securitizes $3-4 million per month under this facility.
This new underwriting capacity provides for a current blended funding cost below 4%. With the addition of this underwriting capacity, the Company is well positioned to execute on its growth strategy over the coming year. The Company continues to target prime quality originations through numerous outlets including direct to dealer relationships and partnerships with OEMs.
Common Share Purchase Warrants
Since April 1, 2016, the Company has received cash proceeds of approximately $5.6 million as a result of the exercise of approximately 18.9 common share purchase warrants. Included in this amount is 4.6 million warrants exercised by management and the board. The exercise of warrants increases equity that can be leveraged to support the Company's portfolio growth plans.
"The expansion of our credit facilities is clear recognition of the strength of the Company's platform for delivering high quality consumer loans to the market. Building quality relationships with our funding partners is a continuing priority for the Company and we look forward to expanding these relationships by adding further capacity in line with our business plans," stated Michael Hilmer, Chief Executive Officer. "The Company has demonstrated success across the three key elements of any finance business being: low cost and significant underwriting capacity, substantial high quality origination volume, and equity additions to support our leverage covenants."
Forward Looking Statement
This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the Company, new funding capacity, funding under existing facilities and the future exercise of common share purchase warrants. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
About Dealnet Capital Corp.
Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to support dealer operations leading to origination growth.
For additional information please visit www.sedar.com.
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