IBC Advanced Alloys Raises Funds Via Master Lease Agreement to Support Ongoing Consolidation and Expansion of its Indiana Copper Alloys Production Facility
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FRANKLIN, Ind., Oct. 04, 2021 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V: IB; OTCQB: IAALF) is pleased to announce it has entered into a new master lease agreement (the “Lease”) among Utica Leaseco LLC and Utica Equipment Finance, LLC (collectively, “Utica”) and certain of the Company’s U.S. subsidiaries (the “Subsidiaries”) in support of the Company’s ongoing expansion and consolidation of its Copper Alloys production facility in Franklin, Indiana.
“This equipment leasing arrangement allows us access to capital necessary to continue to execute on our expansion and consolidation of the Copper Alloys division’s state-of-the-art foundry facility at our North American headquarters in Franklin, Indiana,” said Mark A. Smith, CEO and Chairman of IBC. “Construction of the new facility is well underway now, and we look forward to completing this effort and achieving the cost savings and expanded production capacity it is expected to provide.”
Pursuant to the Lease, the Subsidiaries will grant a security interest in certain equipment located on the Lessees’ premises in exchange for US$900,000 in connection with a capital lease facility for a four-year term. IBC intends to use the proceeds of the Lease to advance the Copper Alloys consolidation and expansion and for working capital purposes.
The Subsidiaries will make lease payments in 51 monthly installments of approximately US$24,389.80, with monthly lease payments increasing by 1.0% for every 0.25% increase to the prime rate of Comerica Bank.
Pursuant to the terms of the Lease, the Subsidiaries will pay aggregate fees and expenses consisting of an approximately US$18,000 origination fee + US$43,200 for legal, appraisal, and title expenses at close, and an annual lease administration fee of US$5,000. The Lease is also subject to an early termination fee ranging from 5%-1% of the total funding amount, which decreases over the term of the Lease. The Lease is further subject to customary terms for similar lease arrangements in the United States manufacturing sector.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
Mark Smith P.E., Esq. , Chairman
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. 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.
Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, the use of proceeds of the Lease. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Please see “Risks Factors” in our Annual Information Form available under the Company’s profile at www.sedar.com, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
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