VANCOUVER, BC, March 17, 2022 /CNW/ - Freshlocal Solutions Inc. (TSX: LOCL) (OTC: FLOCF) ("Freshlocal" or the "Company") is pleased to announce that Prairies Economic Development Canada ("PrairiesCan") has agreed to provide funding of $4.4 million (the "Funding") to the Company's wholly owned subsidiary, Organics Express Inc., operating as SPUD Alberta, to expand its operational capacity in Alberta and further enhance its FoodX eGrocery Management Solution ("eGMS"). The Funding will support the Company's mission to use technology and innovation to reduce the overall environmental impact of online grocery sales, with a focus on reducing food waste and enhancing the local food supply chain.
The Funding will be delivered in certain prescribed amounts for a four (4) year period through PrairiesCan's Business Scale-up and Productivity ("BSP") program. The BSP program supports high-growth businesses that are scaling up their development of innovative goods, services or technologies through, repayable funding to incorporated businesses. The BSP funding is repayable in monthly interest free instalments over a five (5) year period starting in January 1, 2026 and remains subject to the satisfaction of certain customary conditions. No security or collateral will be taken by PrairiesCan in connection with the Funding.
"This non-dilutive funding arrangement with PrairiesCan is an exciting opportunity to enhance our Alberta operations and FoodX technology capabilities, and to focus on solutions that address an issue as important as reducing food waste in a meaningful way," said Freshlocal's Chief Executive Officer, Simon Cairns. "The Company has a long history of providing multi-channel grocery services to its Alberta-based customers, and soon we'll be able to leverage this operational and market experience to significantly decrease food waste rates to improve the province's food ecosystem."
For more information about today's funding announcement with PrairiesCan, please visit:
About Freshlocal Solutions Inc.
Freshlocal is a Vancouver-based company that is building a leadership position in the provision of end-to-end grocery e-commerce solutions. The Company operates two primary businesses, FoodX and eGrocery, both of which support its corporate mission to innovate food systems for people, planet and prosperity. Food-X Technologies ("FoodX") is Freshlocal's scalable end-to-end SaaS-based eGMS which is designed to meet the needs of large and small grocery retailers while providing profitable unit economics. The FoodX eGMS is the culmination of over 20 years of experience in online grocery and the Company's proven track record of delivering efficiently, sustainably and profitably. The Company's consumer eGrocery business has expanded into one of Canada's largest online grocery companies, with a focus on delivering fresh, local, organic produce and groceries, along with exceptional customer experiences. Freshlocal serves the main urban markets in Alberta and British Columbia through its brick and mortar store locations operating under the Blush Lane and Be Fresh banners, as well as through SPUD.ca which is the Company's award-winning online eGrocery platform. Freshlocal's common shares are listed on the Toronto Stock Exchange under the symbol "LOCL". Please visit www.freshlocalsolutions.com.
Notice on Forward Looking Information
Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the the timing of receipt and repayment of the Funding and the intended use of proceeds therefrom. Often, but not always, forward-looking statements or information can be identified by the use of words such as "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information.
With respect to forward-looking statements and information contained herein, the Company has made numerous assumptions, including, among other things, assumptions about general business and economic conditions of the Company and the market in which it operates. The foregoing list of assumptions is not exhaustive.
Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the eGrocery industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to unanticipated operational difficulties (including failure of technology or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); changes in general economic conditions or conditions in the financial markets; changes in laws; risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions; the ability to obtain financing as required; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Freshlocal Solutions Inc.
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