KITS Eyecare Establishes $15 Million Asset-Based Lending Facility with Bank of Montreal

Executive Summary

• KITS Eyecare Ltd. entered into a new three‑year asset‑based lending (ABL) facility with Bank of Montreal providing up to $15 million of borrowing capacity, with an option to increase to $20 million, priced at approximately Prime + 1%.
• The company simultaneously repaid its Business Development Bank of Canada (BDC) term loan ahead of schedule, eliminating all long‑term debt.
• The new facility adds liquidity to the existing $19.7 million cash balance as of Q3 2025 and supports KITS’s growth initiatives across North America.

Key Details

• Facility Size & Terms: $15 million ABL facility with BMO, effective 24 Nov 2025; optional increase to $20 million; interest rate ≈ Prime + 1%; three‑year term.
• Liquidity Impact: Increases cash resources beyond the existing $19.7 million Q3 2025 balance, providing additional capital for expansion and operational investments.
• Debt Repayment: Fully repaid BDC term loan (original principal $23.4 million, maturity 15 Mar 2026) with final $1 million payment on 21 Nov 2025—four months early. Total YTD payments to close the facility amounted to $4.8 million.
• Debt Position: KITS now has no outstanding long‑term debt.
• Use of Proceeds (Implied): To fund continued growth, scale operations, and invest in eyecare services across North America.

Notable Quotes

“As we enter our next phase of growth, we are excited to partner with one of Canada’s largest banks to access cost‑efficient capital that allows us to scale into this growth,” – Roger Hardy, Co‑Founder & CEO, KITS Eyecare Ltd.

“Our partnership with KITS Eyecare has been excellent… they paid off their facility ahead of schedule,” – Nick Drake, Business Development Bank of Canada (BDC).

“KITS is a major player in the consumer industry. We are excited to partner with KITS to provide the additional capital for continued growth,” – Asset Based Lending, Bank of Montreal (BMO).