By Robb M. Stewart
Shares of Goodfood Market Corp. rose Tuesday after the Canadian fresh meals provider reached an agreement with its lenders for new credit facilities so it will no longer be in breach of covenants.
In morning trading Tuesday, the shares were 3.9% higher at C$0.54. The stock has fallen 87% so far this year.
The company said it reached an agreement for an amended and restated credit deal with its lending syndicate which would provide financing of about 10 million Canadian dollars ($7.3 million).
The facilities include a C$5 million term loan, a C$2.5 million revolving credit facility and C$2 million in additional short-term financing.
The facilities feature updated financial conditions, including cash and financing-related covenants, and will be used mainly to refinance existing credit facilities, as for capital expenditures, Goodfood said.
“Combined with our cash balance and our continued cash flow and profitability improvements, the credit facilities will provide flexibility to help propel Goodfood into profitable growth in the coming quarters,” Chief Executive Jonathan Ferrari said.
Earlier this month, the company reported a widened net loss for the fiscal fourth quarter to Sept. 3 as sales dropped 37% and it booked a one-time charge for initiatives including consolidating its footprint and suppliers and simplifying its operations.
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