MONTRÉAL, QUÉBEC–(Marketwired – June 5, 2017) – Le Château Inc. (TSX:CTU), announced it has received a term sheet from its current lender for the renewal of its asset based credit facility for a three-year term with a limit of $70.0 million. In addition, the Company received a term sheet from a subordinate lender for a three-year $15.0 million term loan. In conjunction with this, the Company’s current lender extended the maturity date of the existing credit facility from June 5, 2017 to June 12, 2017, as the Company is currently negotiating the terms of the definitive agreements.
Profile
Le Château de Montréal is a leading Canadian specialty retailer and manufacturer of exclusively designed apparel, footwear and accessories for contemporary and style-conscious women and men, with an extensive network of 179 prime locations across Canada and a rapidly growing e-com platform servicing Canada and the U.S. Le Château, committed to research, design and product development, manufactures approximately 30% of the Company’s apparel in its own Canadian production facilities.
Forward-Looking Statements
This news release may contain forward-looking statements relating to the Company and/or the environment in which it operates that are based on the Company’s expectations, estimates and forecasts. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond the Company’s control. A number of factors may cause actual outcomes and results to differ materially from those expressed. These factors also include those set forth in other public filings of the Company. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements speak only as of the date made and the Company disavows any intention or obligation to update or revise any such statements as a result of any event, circumstance or otherwise except to the extent required under applicable securities law.
The Company’s ability to continue as a going concern for the next twelve months is dependent on its ability to obtain necessary financing through a renewal of its long-term credit facility and the continued support of the controlling shareholders. While the Company believes that it will be able to obtain the necessary financing and has been successful in renewing its facility in the past, there can be no assurance of the success of these plans.
Factors which could cause actual results or events to differ materially from current expectations include, among other things: the Company’s ability to continue as a going concern; the credit facility renewal and other liquidity risks; the ability of the Company to successfully implement its business initiatives and whether such business initiatives will yield the expected benefits; competitive conditions in the businesses in which the Company participates; changes in consumer spending; general economic conditions and normal business uncertainty; seasonality and weather patterns; changes in the Company’s relationship with its suppliers; lease renewals; information technology security and loss of customer data; fluctuations in foreign currency exchange rates; interest rate fluctuations and changes in laws, rules and regulations applicable to the Company and the approval of the listing of the Company’s shares on the TSX Venture Exchange. There can be no assurance that borrowings will be available to the Company, or available on acceptable terms, in an amount sufficient to fund the Company’s needs or that additional financing will be provided by any of the controlling shareholders of the Company. The foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results.
Source: Le Château Inc.
President
(514) 738-7000
Johnny Del Ciancio, CPA, CA
Vice-President, Finance
(514) 738-7000
MaisonBrison: Pierre Boucher
(514) 731-0000