Zedcor arranges $50-million credit facility

Mr. Todd Ziniuk reports ZEDCOR INC. ANNOUNCES NEW INCREASED $50 MILLION CREDIT FACILITY Zedcor Inc. has entered into an agreement for a new $50-million revolving credit facility with National Bank of Canada, its new primary lending partner. The credit facility replaces the company's previous $30-million credit facility and provides access to $23.2-million of additional committed capital to finance Zedcor's growth initiatives. Proceeds from the credit facility will be used to refinance existing debt of $26.8-million, finance organic growth initiatives, support working capital and for other general corporate purposes. Entering into the credit facility significantly increases Zedcor's access to non-dilutive capital, strengthening the company's balance sheet and positioning it to continue executing on its strategic growth plan. The credit facility requires monthly interest-only payments, providing enhanced financial flexibility at a more efficient cost of capital. Highlights of the credit facility include: Expanded capital availability: Increases available debt capacity to $50-million, up from $30-million under prior facilities, with an accordion feature for an additional $25-million. The accordion feature is not subject to fees until drawn. Extended maturity: The new facility matures three years from closing, compared with the previous facility's December, 2027, maturity. Supportive covenants: Net financed debt to EBITDA (earnings before interest, taxes, depreciation and amortization) of 3.5 times and a fixed charge coverage ratio of 1.15 times, providing greater operating flexibility. Improved interest rate: Interest rate reduced by approximately 75 basis points annually, depending on the company's leverage ratio. The credit facility is secured with a first charge over the company's present and future assets, and other standard financial and non-financial security consistent with the previous facility. Given the company's current financial position and projected financial performance, together with its expectations regarding interest rates, Zedcor expects the credit facility to immediately lower its interest payable by approximately 75 bps (basis points) from prime plus 1.5 per cent under the previous facility to prime plus 0.75 per cent under the new credit facility. Todd Ziniuk, president and chief executive officer of Zedcor, commented: "We are pleased to welcome National Bank of Canada as a new lending partner. This expanded facility provides Zedcor with flexible, non-dilutive capital at an optimized cost, supporting both our near-term growth initiatives and long-term strategy. With leverage well below covenant thresholds, we have significant capacity to fund expansion while maintaining financial discipline. Demand for our solutions in Canada and the United States continues to grow, and we continue to scale our manufacturing capacity to meet this opportunity. The credit facility will allow us to execute our core business plan while advancing enhancements to our hardware and customer service platform. We remain committed to driving industry-leading security outcomes and service levels for our customers." Management changes Zedcor announces that Tony Ciarla, president, corporate development, has departed from the company. Zedcor would like to thank him for his dedication to the company and wishes him continued success in future endeavours. About Zedcor Inc. Zedcor is disrupting the traditional physical security industry through its proprietary MobileyeZ security towers by providing turnkey and customized mobile surveillance and live monitoring solutions to blue-chip customers across North America. The company continues to expand its established platform of MobileyeZ towers in Canada and the United States, with emphasis on industry leading service levels, data-supported efficiency outcomes and continued innovation. Zedcor services the Canadian market through equipment and service centres currently located in British Columbia, Alberta, Manitoba and Ontario. The company continues to advance its United States expansion which now has the capacity to service markets throughout the Midwest and West Coast with locations throughout Texas and in Denver, Colo., Phoenix, Ariz., and Las Vegas, Nev. We seek Safe Harbor.