TORONTO, ONTARIO--(Marketwired - Aug. 24, 2016) - Xylitol Canada Inc. (TSX VENTURE:XYL) ("Xylitol") announced today that its subsidiary, Xylitol USA, Inc. ("Xylitol USA"), has entered into an asset-based lending arrangement with Bibby Financial Services Inc. ("BFS").
Xylitol USA has entered into a two year combined US$2,500,000 asset based credit facility arrangement including an accounts receivable line of US$2,000,000 and an inventory line in the amount of US$500,000 with a letter of credit sublimit of US$500,000 (collectively, the "Financing").
"Our new relationship with BFS allows us to continue to recapitalize Xylitol's balance sheet to fund its future growth as it continues to restructure its operations and transform its natural sweetener consumer packaged goods operating platform," said Steven Haasz, CEO of Xylitol.
Proceeds of the Financing will be used for working capital and general corporate purposes.
About Bibby Financial Services Inc.
Bibby Financial Services is a leading independent financial services partner to more than 9,500 businesses worldwide providing more than $1 billion in funding globally. With over 40 operations in 14 countries spanning Europe, North America and Asia, we provide asset-based lending and factoring solutions to help businesses grow in domestic and international markets. Established in 2001, Bibby Financial Services North America has seven offices in the U.S. and Canada that support businesses in virtually any industry. We hold memberships in the Commercial Finance Association, the International Factoring Association, and the American Finance Association. Bibby Financial Services is part of Bibby Line Group (BLG), a diverse and forward-looking family business with over 200 years' experience of providing personal, responsive and flexible customer solutions. To find out more about Bibby USA and Bibby Canada, please visit www.bibbyusa.com or www.bibbycanada.ca.
About Xylitol Canada Inc.
Xylitol Canada operates two (2) business units that address the growing xylose and xylitol markets. Xylitol Canada's consumer packaged goods division is based in Denver Colorado and has grown from under $500,000 in revenue in 2010, to over $8,600,000 in 2014. Xylitol Canada operates a 50,000 square foot xylitol facility where it produces and packages a full catalog of natural sugar free products, most notably its natural sugar alternatives. Through this Denver based facility, the Company services major retail customers such as Loblaws, Whole Foods, Costco, Sprouts, and many others.
Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.
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