TORONTO, ON / ACCESSWIRE / February 6, 2017 / SusGlobal Energy Corp. ("SusGlobal Energy") or the ("Company") is pleased to announce that it has entered into an agreement for a Corporate Line of Credit ("Line of Credit") of CAD$5,500,000 with PACE Savings & Credit Union Limited ("PACE").
The Line of Credit facility will be advanced in tranches to allow for the funding of engineering, permitting, construction costs and equipment purchases for the Georgian Bluffs BioGrid Digester Expansion and Operation Project located near Owen Sound, Ontario, Canada. This will be the first wastewater treatment plant in Ontario to achieve a "net zero" status for sustainable waste treating. The site will produce all the electricity needed for its operations, export 100 kW power under a Feed-In Tariff Contract ("FIT Contract") and will supply biogas or power to nearby industrial and commercial sites. The project will also reduce greenhouse gas emissions from the production of renewable electricity and heat as well as reducing methane emissions by diverting organics from landfilling, allowing the Company to monetize the emission reductions under Ontario's Cap and Trade Program. The Company also expects to produce a Class AA Organic Fertilizer that can be added to composting facilities or incorporated directly into fertilizer compounds from the digestate.
The initial advance of CAD$1,600,000 was received by the Company on Friday, February 3, 2017.
During the construction period, the credit facility will be subject to monthly interest payments only. Once the expanded facility is fully operational, the line will be converted to a term facility and subject to blended monthly payments of principal and interest sufficient to repay the term loan within the specified amortization. The loan is fully open for prepayment at any time without notice or bonus.
A commitment fee of CAD$110,000 was paid to PACE on closing. In addition and as continuing security for the financing, the Company provided PACE with a pledge of shares, to remain, so long as the credit facility is not in default or demanded and shall be released on the date on which the credit facility is paid in full.
About PACE Savings & Credit Union Limited
PACE traces its roots back to Farmunited, the first credit union incorporated under the new Credit Union Act of 1940. Since then, over 60 credit unions have joined forces with PACE to serve the unique needs of their individual, community and commercial memberships. Headquartered in Vaughan, Ontario, PACE serves its 38,000 members holding some $1.98 billion in assets, deposits and assets under administration through 17 locations including Pace Securities Corp, a wholly owned and operated IIROC regulated investment dealer. To find out more about cooperative banking at PACE, visit www.pacecu.ca follow @PACECU on Twitter, or find us on Facebook.
About SusGlobal Energy Corp.
SusGlobal Energy Corp. is a renewable energy company focused on acquiring, developing and monetizing a portfolio of proprietary technologies in the waste to energy application globally. It is management's objective to grow SusGlobal Energy into a significant sustainable waste to energy provider. For more information, please visit the Company's website at: www.susglobalenergy.com, or follow @susglobalenergy on Twitter.
This release contains forward-looking statements. These statements relate to future events or each company's future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms, or other comparable terminology. These statements are only predictions. Actual events or results may differ materially from those in the forward-looking statements as a result of various important factors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the company, or any other person, that such forward looking statements will be achieved. The business and operations of the company are subject to substantial risks which increase the uncertainty inherent in forward-looking statements. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.
SOURCE: SusGlobal Energy Corp.