CALGARY, Alberta, Jan. 11, 2022 (GLOBE NEWSWIRE) -- ApartmentLove Inc. (CSE: APLV) (“ApartmentLove” or the “Company”), a leading provider of online home and apartment rental marketing services to landlords and renters in North America and elsewhere around the world, is pleased to announce that it has signed a term sheet with a New York based lender for a term debt facility of up to $10,000,000 (the "Loan Facility") to support the Company’s acquisition of substantially all the assets of a Florida-based Internet listing company, iLS Network, previously press released by the Company on October 28, 2021 (the "Proposed Acquisition"). The completion of the Loan Facility is subject to the parties entering into applicable definitive agreements and all requisite regulatory approvals. The Company intends to complete a concurrent brokered private placement of its common shares in connection with the Proposed Acquisition and the Loan Facility, the details of which will be announced in the near future.
Trevor Davidson, President and CEO of ApartmentLove, noted, “This facility provides ApartmentLove with the capital it needs to complete more than just the Proposed Acquisition. As such, once we execute the definitive agreements in connection with the Loan Facility, which we anticipate doing in the very near term, we will then be able to execute on our growth through acquisition mandate while continuing to pursue our 2022 organic growth model across North America, Europe, and elsewhere around 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 principal amount of convertible debentures of the Company (the "Convertible Debentures") in the aggregate principal amount of $425,000. The Convertible Debentures have a two-year term from the date of issuance and bear interest at 10% per annum. All or a portion of the outstanding principal and/or accrued but unpaid interest under the Convertible Debentures can be converted into common shares in the capital stock of the Company at a conversion price of $0.25 per common share, at the option of the holder. The Company anticipates closing its second and final tranche of the private placement of the Convertible Debentures on or about January 31, 2022.
About the Proposed Acquisition
Based on unaudited, management prepared information provided to the Company by the vendor, iLS Network earned approximately USD$868,000 in pre-tax net operating income on gross revenues of about USD$1,747,000 for the 12-months ended September 30, 2021. After realizing projected efficiencies from the consolidation of operations of about USD$285,000, resulting pre-tax net operating income is anticipated to be in excess of USD$1,150,000 on an annualized unadjusted basis. Based on this information, the management of ApartmentLove anticipates one of the benefits of the Proposed Acquisition is that post-closing the Proposed Acquisition, ApartmentLove will become cash flow positive, a remarkable milestone in the Company’s continued growth and development. Currently, the Company plans to execute the definitive agreement in connection with the Proposed Acquisition (the “Asset Purchase Agreement” or the "APA") within the next 30 days.
About the Loan Facility
The term sheet that the Company has executed in connection with the Loan Facility provides ApartmentLove with access to a draw down loan facility of up to $10,000,000 to finance growth through acquisitions. Once drawn, the amount of the loan drawn will be represented by a secured term note (each, a "Note") that will mature in 24 months and will bear an interest at 14% per annum reduced to 7% per annum in any month where the Company's monthly volume weighted average trading price for the previous month is at least 20% higher than $0.37 per share. Once the loan has been drawn and a Note issued, the lender shall have the right to convert the outstanding loan amount under Note, in whole or in part, into units of the Company ("Units") at $0.37 per Unit. Each Unit consists of one common share and one common share purchase warrant of the Company expiring on the date that 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 renters nationwide. Promoting residential rental properties in every major market 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 scale as a fast-growing technology company in the hot “PropTech” industry, ApartmentLove is executing its growth and expansion plans by acquiring good assets in choice rental markets at attractive multiples.
For more information visit https://apartmentlove.com/investors or contact:
Trevor Davidson
President & CEO
ApartmentLove Inc.
tdavidson@apartmentlove.com
(647) 272-9702
Reader Advisory
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "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 the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward looking statements include, but are not limited to: the successful negotiation and entering into of the APA in connection with the Proposed Acquisition; the terms and conditions of the APA, including but not limited to the proposed purchase price and the conditions to the closing of the Proposed Acquisition; the closing of the Proposed Acquisition pursuant to the terms and conditions of the APA to be entered into; the proposed equity financing of the Company to fund a portion of the purchase price for the Proposed Acquisition; the execution of the definitive agreement in connection with the Loan Facility to fund a portion of the purchase price for the Proposed Acquisition; the material terms of the Loan Facility; the anticipated benefits of the Proposed Acquisition and the ability of the Company to realize on such anticipated benefits of the Proposed Acquisition; the unaudited vendor management-estimated annual gross revenues, pre-tax net operating income, and operating margins remaining consistent; the Company realizing the benefits of its growth by acquisition mandate; the ability of the Company to become cashflow positive; the offering of letters of employment to the existing sales, marketing, and development team members of the iLS Network by the Company and the ability of the Company to successfully integrate and realize the benefits of the proposed new employees; and the receipt of all applicable governmental, regulatory and shareholder approvals, including the approval of the CSE, 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 release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place any undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
To the extent any forward-looking information in this press release constitutes "future-oriented financial information" or "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated product sales of the Company and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place any undue reliance on such future-oriented financial information and/or financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading "Reader Advisory". The Company's actual financial position and results of operations may differ materially from its management’s current expectations and, as a result, the Company's actual revenue may differ materially from the prospective revenue projections provided in this press release. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations.
Pre-tax NOI (net operating income) does not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") as issued 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 the non-GAAP measure of "pre-tax NOI", combined with IFRS measures, such as revenue and net income (loss), are useful measures to its shareholders as management relies on such measures to provide insight into future operations. Readers are cautioned, however, that "pre-tax NOI" should not be construed 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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ApartmentLove® | the feeling of home
