ApartmentLove signs a term sheet for a credit facility in

CALGARY, Alberta, January 11, 2022 (GLOBE NEWSWIRE) – ApartmentLove Inc. (CSE: APLV) (“ApartmentLove“or the”Society“), a leading provider of online marketing services for the rental of homes and apartments to landlords and tenants in North America and around the world, is pleased to announce that it has signed a term sheet with a New York-based lender for a term credit facility of up to $ 10,000,000 (the “Loan facility“) to support the Company’s acquisition of substantially all of the assets of a Florida-based internet listing company, iLS Network, previously communicated by the Company on October 28, 2021 (the”Proposed acquisitionCompletion of the Loan Facility is subject to the completion by the parties of the applicable final agreements and all required regulatory approvals, details of which will be announced shortly.

Trevor Davidson, President and CEO of ApartmentLove, said: “This facility provides ApartmentLove with the capital it needs to do more than just the proposed acquisition. Thus, once we have signed the definitive agreements related to the loan facility, which we plan to do in the very short term, we will then be able to execute our mandate of growth by acquisition while continuing our model of 2022 organic growth across the North. America, Europe and elsewhere in the world.

The Company is also pleased to announce that it has completed the first tranche of its non-brokered private placement of up to $ 1,000,000 in convertible debentures of the Company (the “Convertible debentures“) with a total principal amount of $ 425,000. The convertible debentures have a term of two years from the date of issue and bear interest at the rate of 10% per annum. All or part of the outstanding principal and / or interest accrued but unpaid under the Convertible Debentures may be converted into common shares of the capital stock of the Company at a conversion price of $ 0.25 per common share at the option of the holder. second and final tranche of the private placement of convertible debentures on or about January 31, 2022.

About the proposed acquisition

Based on unaudited information prepared by management and provided to the Company by the supplier, iLS Network achieved pre-tax net operating income of approximately $ 868,000 on gross revenues of approximately $ 1,747,000. for the 12-month period ended September 30, 2021. After realizing the expected efficiency gains from the consolidation of operations of approximately US $ 285,000, the resulting pre-tax net operating income is expected to be greater than 1 US $ 150,000 on an unadjusted annualized basis. Based on this information, the management of ApartmentLove expects that one of the advantages of the proposed acquisition is that after the closing of the proposed acquisition, ApartmentLove will become a positive cash flow, a remarkable step in the growth. and the continued development of the company. The Company is currently considering entering into the definitive agreement in connection with the proposed acquisition (the “Asset purchase contract“or the”APA“) within the next 30 days.

About the loan facility

The term sheet that the Company signed under the loan facility provides ApartmentLove with access to a loan facility of up to $ 10,000,000 to finance growth through acquisitions. Once drawn, the loan amount drawn will be represented by a secured term note (each, a “To note“) which will mature in 24 months and will bear an interest of 14% per annum reduced to 7% per annum in any month in which the average price weighted according to the monthly volume of the Company for the preceding month is at less 20% greater than $ 0.37 per share Once the loan is drawn and a note is issued, the lender will have the right to convert the outstanding amount of the loan under the note, in whole or in part, into shares of the Company ( “Units“) at $ 0.37 per unit. Each unit is made up of one common share and one common share purchase warrant of the Company expiring on the date which is 24 months from the date of issue with an exercise price of $ 0.45 per share.

About ApartmentLove Inc.

ApartmentLove Inc. (CSE: APLV) is a leading provider of residential rental marketing services to landlords and tenants nationwide. Promoting residential rental properties in all major markets in Canada and the United States, ApartmentLove has active rental listings in 30 countries on 5 continents around the world. Having proven its ability to evolve as a fast growing technology company in the fashionable ‘PropTech’ industry, ApartmentLove is executing its growth and expansion plans by acquiring good assets in prime rental markets at attractive multiples. .

For more information, visit https://apartmentlove.com/investors or contact:

Trevor Davidson
President and CEO
ApartmentLove Inc.
[email protected]
(647) 272-9702

Notice to readers

Certain information contained in this press release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, some of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “plan”, “intend”, “believe”, “anticipate”, “estimate”, “Power”, “do”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in preparing this information, while believed to be reasonable at the time of preparation, may prove to be imprecise and, as such, forward-looking statements should not be relied on unduly. Forward-looking statements include, but are not limited to: the successful negotiation and completion of the ABS in connection with the proposed acquisition; the terms and conditions of the APP, including, but not limited to, the proposed purchase price and the terms of the proposed acquisition closing; the closing of the proposed acquisition in accordance with the terms and conditions of the APP to be concluded; the proposed equity financing of the Company to fund a portion of the purchase price of the proposed acquisition; the signing of the definitive loan facility agreement to finance a portion of the purchase price of the proposed acquisition; the material terms of the loan facility; the anticipated benefits of the proposed acquisition and the Company’s ability to realize those anticipated benefits of the proposed acquisition; the annual gross revenues estimated by the management of the suppliers, the net operating profit before taxes and the operating margins remaining constant; the Company realizing the benefits of its growth through an acquisition mandate; the Company’s ability to achieve positive cash flow; the provision of employment letters to existing members of the iLS sales, marketing and network development teams by the Company and the Company’s ability to successfully onboard and realize the benefits of the proposed new employees; and receipt of all applicable government, regulatory and shareholder approvals, including CSE approval, if required. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

The forward-looking information contained in this press release is made as of the date hereof and the parties are under no obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise, except if required by securities laws. Due to the risks, uncertainties and assumptions contained in this document, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

To the extent that any forward-looking information contained in this press release constitutes “forward-looking financial information” or “financial outlook” within the meaning of applicable Canadian securities laws, such information is provided to demonstrate the anticipated product sales of the Company and The reader is cautioned that this information may not be appropriate for other purposes and that the reader should not place undue reliance on this forward-looking financial information and / or financial outlook. Forward-looking financial information and financial outlook, like forward-looking information in general, are, without limitation, based on assumptions and subject to the risks set out above under the heading “Notice to reader”. The actual financial condition and results of operations of the Company may differ materially from the current expectations of its management and, therefore, the actual revenues of the Company may differ materially from the forward-looking income projections provided in this press release. This information is presented for informational purposes only and may not be an indication of the actual financial condition or results of operations of the Company.

The NOI (net operating income) before tax does not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS“) as enacted by the International Accounting Standards Board and, therefore, are considered non-GAAP measures and may not be comparable to similar measures presented by other issuers. ApartmentLove believes that the measure is not GAAP compliant “NOI before tax”, combined with IFRS measures, such as revenue and net income (loss), are useful measures for its shareholders, because management relies on such measures to provide an overview of future operations Readers are cautioned, however, that the “pre-tax OIL” should not be interpreted as an alternative to financial measures determined in accordance with GAAP or IFRS as an indicator of the Company’s financial performance.

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