Tribe Property Technologies Announces Replacement Senior Loan Facility of up to $15 Million

Executive Summary

• Tribe Property Technologies entered into a definitive loan agreement with CIBC for a senior loan facility of up to $15 million, replacing its existing term loan.
• The new facility includes a $3 million revolving operating line and a $12 million revolving M&A line, offering lower interest rates, fee waivers, and extended amortization terms.
• The financing provides non‑dilutive capital to support working‑capital needs, strategic acquisitions, and further reduction of vendor take‑back (VTB) obligations.

Key Details

• Facility Structure:
• $3 million revolving operating line for working‑capital requirements.
• $12 million revolving M&A facility intended to fund strategic acquisitions.
• Comparison to Prior Facility:
• Previous: $1 million operating line + $7 million non‑revolving M&A facility (with $5 million accordion).
• New facility replaces prior terms, increasing total available capital from $8 million to $15 million.
• Drawn Amounts as of Sep 30 2025:
• ~$650 k drawn against the former operating line.
• $9.5 million drawn against the former M&A facility – now obligations under the new facility.
• Interest Rate & Fees:
• Prior rate: Prime + 2.65% per annum.
• New facility carries a more favourable (lower) interest rate; all commitment, renewal, management and standby fees are waived.
• Amortization Terms:
• Initial M&A draws amortized over 10 years with blended monthly principal‑and‑interest payments.
• Subsequent draws amortized over 7 years.
• Prior facility amortized over 5 years.
• Covenants & Security:
• Company will enter into security documentation with CIBC and be subject to financial and negative covenants.
• Strategic Impact:
• Provides improved access to non‑dilutive capital, reducing reliance on vendor take‑backs (VTBs) and earn‑out structures.
• VTB obligations declined to $1.95 million as of Sep 30 2025—a 55% reduction from year‑end 2024—demonstrating balance‑sheet strengthening.
• Use of Proceeds:
• Support working capital, fund strategic acquisitions, and manage/repay existing VTB obligations.

Notable Quotes

“We are thrilled to announce this significant milestone for Tribe, which illustrates our commitment to strategic growth and financial discipline,” said Joseph Nakhla, CEO. “Executing this financing facility is an essential part of our growth strategy…provides us with improved access to non‑dilutive capital and lowers our borrowing costs…”