DIRTT Announces Financing from BDC and Refinancing of Debentures

Executive Summary

• DIRTT Environmental Solutions Ltd. entered into a Letter Agreement with the Business Development Bank of Canada for a term loan up to C$15 million.
• The loan will be disbursed in two tranches (C$10 M initially, C$5 M subsequently) and is secured by equipment, personal property, a corporate guarantee, landlord waivers, and a US$5 M readvanceable mortgage on its Chicago headquarters.
• Proceeds are earmarked to partially refinance the company’s 6 % convertible debentures due January 31 2026 and to repay the remaining C$1.6 M of those debentures with cash on hand.

Key Details

• Loan Amount: Up to C$15.0 million.
• Disbursement Schedule:
• Initial tranche – C$10.0 million (upon satisfaction of conditions precedent).
• Secondary tranche – C$5.0 million (subsequent to initial disbursement).
• Interest Rate: BDC’s floating base rate (currently 6.55% per annum) minus 0.75%, i.e., approximately 5.80% at signing.
• Repayment Terms:
• Monthly principal repayments begin May 2026.
• Interest‑only payments due monthly on the last day of each month following the first disbursement.
• Maturity date – April 30 2032.
• Security Package:
• First‑ranking security interest in specific equipment and all present/after‑acquired personal property (excluding consumer goods).
• Guarantee from DIRTT Environmental Solutions, Inc. for the full loan amount.
• Landlord’s waivers of distraint.
• First readvanceable mortgage of US$5.0 million on land and buildings at 325 North Wells Street, Chicago, IL, USA.
• Use of Proceeds:
• Partial refinancing of outstanding 6 % convertible debentures due Jan 31 2026.
• Remaining C$1.6 million principal of the debentures to be repaid using cash on hand.
• CEO Comment: Benjamin Urban highlighted that the financing “optimizes our capital structure and strategically positions us to continue executing on our transformative growth plan.”

Notable Quotes

“This financing represents another important step in optimizing our capital structure and strategically positions us to continue executing on our transformative growth plan,” – Benjamin Urban, CEO