Kits Eyecare arranges $15M asset-based lending facility

Executive Summary

• Kits Eyecare Ltd. has established a new three-year $15 million asset-based lending (ABL) facility with Bank of Montreal (BMO), effective November 24, 2025, with an option to increase the facility to $20 million.
• Concurrently, the company fully repaid its Business Development Bank of Canada (BDC) term loan of $23.4 million, completing the final $1 million payment on November 21, 2025, retiring the debt more than four months ahead of schedule.
• The company now has no outstanding long-term debt and aims to use the new capital for growth and scaling operations across North America.

Key Details

• New Facility Terms:
  • Lender: Bank of Montreal (BMO).
  • Type: Asset-based lending (ABL) facility.
  • Duration: Three years.
  • Borrowing Capacity: $15 million, with an option to increase to $20 million.
  • Pricing: Approximately prime plus 1 percent.
  • Effective Date: November 24, 2025.
• Debt Repayment:
  • Previous Lender: Business Development Bank of Canada (BDC).
  • Original Loan Amount: $23.4 million (issued March 26, 2019).
  • Scheduled Maturity: March 15, 2026.
  • Final Payment: $1 million paid on November 21, 2025.
  • Total Payments in 2025: $4.8 million year-to-date.
  • Status: Loan retired more than four months ahead of schedule; Kits Eyecare has no outstanding long-term debt.
• Strategic Context:
  • CEO Roger Hardy cited the partnership as a move to access cost-efficient capital to scale into the next phase of growth.
  • The company describes itself as a fast-growing consumer technology vision care brand utilizing vertical integration and AI-powered tools (OpticianAI).

Notable Quotes

• Roger Hardy, Co-founder and CEO: "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... This enhanced liquidity provides access for further investment as we continue to make eyecare easy for all customers across North America."
• Nick Drake, Business Development Bank of Canada: "Our partnership with Kits Eyecare has been excellent. Management has leveraged our capital to build a dynamic, locally headquartered company that will benefit the region for years to come... It has truly been a pleasure working with them and we look forward to the company's next chapter."
• Bank of Montreal: "Kits is a major player in the consumer industry. We are excited to partner with Kits to provide the additional capital for continued growth."