MISSISSAUGA, ON, Dec. 20, 2020 / CNW / – Aegis Brands Inc. (TSX: AEG) (“Aegis” or the “Company”), formerly The Second Cup Ltd., today announced that it has entered into a loan agreement with CWB Franchise Finance (“CWB ”), A division of Canadian Western Bank Financial Group, under which a revolving credit facility of $ 4.0 million has been made available to Aegis.
This new credit facility will be available for a period of 24 months and its maintenance will be reviewed by the CWB on an annual basis. The revolving credit facility is secured by the assets of the Second Cup and Bridgehead businesses and is expected to be used for general corporate purposes.
“CWB Franchise Finance is a financial partner who is an advocate for Canadian innovation and who is committed to supporting us in our expansion efforts,” said Steven pelton, President and CEO of Aegis. “Given our expertise in the Canadian retail and restaurant industry, combined with access to leading real estate assets across the country, Aegis’ growth opportunities are very exciting.”
“We are pleased to partner with Second Cup, a Canadian brand with deep historical roots and recognition across the country,” said Dimitri Mazur, Senior Director, CWB Franchise Finance. “Our commitment to Aegis, the parent company, is proof that CWB firmly believes in the restaurant industry and will recover from the challenges caused by COVID-19. Now more than ever, the restaurant industry needs financial partners who know their stuff. and understand how strong relationships lead to positive results. We look forward to providing experienced brands with proactive solutions, including properly structured debt. “
Aegis was created with the vision of building a portfolio of independent brands that can thrive with access to the premium resources and shared services needed to help them thrive. The company has made great strides in transforming a single coffee brand into Aegis while adapting and adapting to deal with the dramatic changes in the restaurant and retail landscape here. 2021.
Second Cup plans to open 17 “non-traditional” cafes by the end of 2020 and 2021, in addition to two drive-thru points before the end of the year. Affinity for the Bridgehead Coffee brand remains strong despite the pandemic, as evidenced by significant increases in its e-commerce and wholesale volume. The first three locations of the company’s Hemisphere cannabis subsidiary rotated during the last lockdown in Toronto to provide curbside and delivery options. Management is also optimistic that four more locations in the hemisphere are ready to be opened and further expansion opportunities in Alberta.
About Aegis Brands Inc.
Founded in 1975, Aegis Brands Inc., formerly The Second Cup Ltd., was a Canadian specialty coffee retailer operating franchised coffee shops and owned by the company through Canada. In November 2019, the Company announced its intention to put in place a new operational structure in support of its new strategy. The company now owns and operates the existing Second Cup Coffee Co. business as part of a brand portfolio that also includes Bridgehead Coffee and Hemisphere Cannabis Co. For more information, please visit www.aegisbrands.ca or find brands on Facebook, Instagram and Twitter.
About CWB Franchise Finance
CWB Franchise Finance, a division of the CWB Financial Group, specializes in financing regional and national restaurants and hotels and is a leading lender to the Canadian restaurant and hospitality industries. Previously, the franchise finance arm of GE Capital Canada, CWB Franchise Finance was acquired by CWB Financial Group in 2016 following a successful track record of over 800 clients with over 1,525 real estate locations over 14 years. To date, more than $ 3 billion has been invested in the Canadian hotel and restaurant space.
About CWB Financial Group
CWB Financial Group is a diverse financial services organization known for a highly proactive customer experience serving businesses and individuals across Canada. The core business lines of the CWB Financial Group include full banking and personal banking services offered by CWB branches and internet banking services provided by Motive Financial. Highly responsive nationwide specialist financing is offered under the CWB Optimum Mortgage, CWB Equipment Financing, CWB National Leasing, CWB Maxium Financial and CWB Franchise Finance banners. Trust services are offered through CWB Trust Services. Comprehensive wealth management services are provided by CWB Wealth Management and its affiliated brands, including TE Wealth, Leon Frazer & Associates, CWB McLean & Partners and Canadian Western Financial. As a public company on the Toronto Stock Exchange (TSX), CWB trades under the symbols “CWB” (common shares), “CWB.PR.B” (preferred shares Series 5), “CWB.PR.C” (series 7 preferred shares) and “CWB.PR.D” (preferred shares series 9). Learn more at www.cwb.com.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking information that represents internal expectations, estimates or beliefs regarding, among other things, future activities or future operating results and various components thereof. The use of any of the words “anticipate”, “continue”, “expect”, “may”, “will”, “plan”, “should”, “believe” and similar expressions suggesting results or future events are intended to identify forward-looking information. Forward-looking statements include the Company’s expectations regarding the use of the proceeds from the CWB loan, the Company’s growth and strategy going forward, the Company’s plans to open additional Second Cup and Hemisphere locations and others. related matters on the Company’s business, operations and financial performance. Statements regarding this forward-looking information reflect the current beliefs of management and are based on information currently available to management.
These statements are not guarantees of future performance and are based on management’s estimates and assumptions which are subject to inherent risks and uncertainties, some of which are beyond the control of the Company, which could result in the actual performance and financial results of the Company for future periods differ significantly. forward-looking information contained in this press release. The dynamic nature of the COVID-19 pandemic and the events and circumstances resulting from or associated with the pandemic mean that management can offer no assurance that forward-looking information or forward-looking statements will occur or will be accurate in the circumstances. This is discussed in more detail under the heading “Risk Factors” in the Company’s Annual Information Form available at www.sedar.com.
Management’s estimates and assumptions include: the ability to manage the risks (economic, operational, financial and other) associated with the COVID-19 pandemic, the ability to identify new acquisition opportunities and successfully integrate past and future acquisition targets in the business, the ability to open additional Second Cup locations and further expand into the retail cannabis market in both Ontario and Alberta, and the ability to negotiate satisfactory rental agreements with respect to any new locations to be opened. Risks and uncertainties include: the ability to realize the expected benefits of the business reorganization; risks associated with the identification and integration of acquisitions; the risks associated with the COVID-19 pandemic; the financial, operational and regulatory risks associated with the Company’s continued expansion into the retail cannabis market; and the risks that lease agreements for new locations will not be negotiated on terms satisfactory to the Company or will not be negotiated at all. Although the forward-looking information contained in this press release is based on what management considers reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Therefore, readers should not place undue reliance on these forward-looking statements.
The risks associated with the COVID-19 pandemic include: the ultimate extent, duration and severity of the pandemic itself and associated government restrictions; the effects on consumer and commercial behavior and other factors associated with or resulting from such a pandemic, including the fact that the outbreak of the COVID-19 pandemic could result in the temporary suspension of the activity of additional cafes ; a decrease in customers’ willingness to frequent the Company’s cafes; shortages of employees to staff the company’s cafes; interruption of supplies from third parties on which the Company relies; the imposition of government regulations having a negative impact on the activities of the Company; the availability of the CECRA program; the willingness of the owner to consider requests for deferral of rent or repayment of loan from franchisees and / or requests by the Company to modify or terminate certain coffee leases; that franchisees can ask the Company to take certain measures to support its franchisees (whether financially or otherwise); and that the pandemic and the response of consumers, governments and businesses to it could have a material impact on general economic activity and otherwise have a material adverse effect on the business, financial condition and results of operation of the Company. These side effects could be quick and unexpected.
All forward-looking information contained in this press release is qualified by these cautionary statements. The forward-looking information contained in this press release is presented only as of the date of publication. Except as required by law, the Company disclaims any intention or obligation to update or revise forward-looking statements to reflect subsequent events or circumstances.
SOURCE Brands Aegis Inc.
For further information: Ba Linh Le, Chief Financial Officer, (905) 362-1827, [email protected] or Erin Richards, (416) 627-5728, [email protected]