MISSISSAUGA, ON, Canada – Aegis Brands Inc. (TSX: AEG) (“Aegis” or the “Company”), formerly The Second Cup Ltd., today announced it has entered into a loan agreement with CWB Franchise Finance (“CWB”), a division of Canadian Western Bank Financial Group, pursuant to 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 continuance will be reviewed by 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 that is an advocate for Canadian innovation and is dedicated to supporting us in our expansion efforts,” said Steven Pelton, President and CEO of Aegis. “Given our expertise in the Canadian retail and foodservice industry, combined with access to top tier real estate assets across the country, the possibilities for growth of Aegis are very exciting.”
“We are happy to partner with Second Cup, a Canadian brand with deep historical roots and recognition across the country,” says Dimitri Mazur, Senior Manager, CWB Franchise Finance. “Our commitment to Aegis, the parent company, is evidence that CWB believes strongly in the restaurant industry, and that it will recover from the challenges caused by COVID-19. Now more than ever, the restaurant industry needs financial partners that know their business and understand how strong relationships lead to successful outcomes. 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 flourish with access to premium resources and shared services required to help them thrive. The Company has made great strides in the transformation from a single coffee brand to Aegis while adjusting and adapting to meet the dramatic changes in the foodservice and retail landscape heading into 2021.
Second Cup plans to open 17 “non-traditional” café locations in the remainder of 2020 and 2021, in addition to two drive-thru locations before year-end. The 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 have pivoted during the most recent lockdown in Toronto to provide curbside and delivery options. Management is also optimistic about another four Hemisphere locations ready to be opened and new opportunities to expand in Alberta.
