Noble Iron Announces Asset Sharing Partnership With Volvo and Additional Financing
By Marketwired News
SAN FRANCISCO, CALIFONIA–(Marketwired – June 6, 2016) – Noble Iron Inc. (“Noble Iron,” or “the Company”) (TSX VENTURE:NIR) announced the launch of an asset sharing partnership with Volvo Construction Equipment (“Volvo”). Under the terms of the agreement, a number of Volvo-owned assets will be placed into Noble Iron’s equipment rental pool in Los Angeles, California, and the two companies will share rental revenue earned on the Volvo equipment. Volvo initially contributed approximately $560K of equipment under the Noble Iron asset sharing partnership.
The Company also announced a $4.0 million loan facility, of which $3.7 million has been committed, to fund working capital and growth initiatives. The loan is effective June 3, 2016 and has a term of one year, with the Company’s option to extend for an additional six months. The loan is secured by the assets of Texada Software, the Company’s wholly owned software subsidiary, and other terms include an annual interest rate of 15%, paid quarterly, with no principal payments due until maturity of the loan. Related parties participated for $2.6 million of the proceeds. The Company continues to pursue opportunities to optimize its capital structure.
Noble Iron is committed to becoming the technology driven partner of choice for regional construction professionals and equipment owners. The asset sharing agreement further strengthens the equipment selection and growth of Noble Iron’s equipment rental and sales platform. The additional financing will support the roll out of new software applications such as “Fleet Logic” and “Insight” to further empower owners and users of construction equipment.
About Noble Iron Inc. (TSX VENTURE:NIR)
Noble Iron Inc. is a technology company that offers on-demand construction equipment, and software applications to equipment owners and users to manage their equipment’s lifecycle. The company operates in equipment rental, equipment sales, and software for construction and industrial equipment users and owners.
Noble Iron Inc.’s equipment rental and dealership operations do business under the name, “Noble Iron”, and currently serve customers in California and Texas. Noble Iron offers construction and industrial equipment and accessories for rent and for sale, and is an exclusive distributor of LiuGong Construction Machinery equipment and Allied Construction Products in Southeast Texas.
Noble Iron Inc.’s software segment operates under the name, “Texada Software”. Texada offers cloud or client-based software applications for equipment rental companies, equipment dealerships, construction companies, general contractors, and any construction or industrial equipment user, including mechanics, and logistics and service technicians. Texada Software’s applications manage the entire equipment lifecycle, including equipment purchasing; rental & sales transactions; inventory location, utilization, maintenance and depreciation tracking; used equipment sales and disposals analysis; and inventory replenishment analysis. Texada’s software applications include, SRM (Systematic Rental Management), FleetLogic, Insight and Gateway.
References in this press release to Adjusted EBITDA are to earnings before interest expense, deferred income taxes, depreciation, amortization, share based compensation, gain on fair value increment on acquisition (net of deferred income taxes), acquisition expenses, accretion on convertible debt, interest on convertible debentures, severances and foreign exchange. Adjusted EBITDA is a measure used by investors to compare issuers on the basis of ability to generate cash flow from operations. Adjusted EBITDA is not an earnings measure recognized by International Financial Reporting Standards (IFRS), does not have standardized meanings as prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Noble Iron’s management believes that Adjusted EBITDA is an important supplemental measure in evaluating Noble Iron’s performance and in determining whether to invest in its common shares. Readers of this information are cautioned that Adjusted EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as an indicator of Noble Iron’s performance, or cash flows from operating, investing and financing activities as measures of Noble Iron’s liquidity and cash flows. Noble Iron’s method of calculating Adjusted EBITDA may differ from the methods used by other issuers and, accordingly, Noble Iron’s Adjusted EBITDA may not be comparable to similar measures presented by other issuers.
This news release may contain forward-looking statements which reflect the Company’s current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “expect”, “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company’s ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Noble Iron Inc.
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