Flow Beverage gets C$20.3 million 36-month term loan via NFS Leasing

By Marisa Wong

Los Angeles, Jan. 3 – Flow Beverage Corp. entered into a 36-month senior secured term loan with NFS Leasing Canada Ltd. of up to C$20.3 million, according to a press release.

Flow has initially drawn C$15.3 million under the loan and has the ability to draw an additional C$5 million prior to the one-year anniversary of the initial draw.

The loan bears interest at 14% per annum and has share purchase warrant coverage of 10% on any amounts drawn on the loan.

The warrants have a 10-year term, an exercise price of $0.50 per warrant and an accelerated expiry date if the weighted average trading price of subordinate voting shares of Flow trade at or above $1.75 for 10 consecutive trading days.

Flow intends to use the loan proceeds to repay C$9.6 million of unsecured notes, as well as to invest in the growth of the Flow brand, for working capital and for general corporate purposes.

Canaccord Genuity acted as financial advisor to Flow with respect to the loan.

Flow is a Toronto-based water company that provides sustainably sourced naturally alkaline spring water in recyclable and plant-based packaging.

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