Inscape Announces new and Increased $15,000,000 Credit Facility

Inscape Corporation ("Inscape" or the "Company") (TSX: INQ), is pleased to announce that the Company has today entered into a new $15,000,000 senior credit facility with FrontWell Capital Partners Inc. (“Frontwell”) to replace the company’s existing senior credit facility with CIBC. The new loan facility (the “Loan Facility”) is a secured revolving credit facility having a committed term of twelve months, with options to renew thereafter. The proceeds of the Loan Facility will be used to repay existing indebtedness of the Company, finance new capital equipment and for general working capital purposes.

The availability of the Loan Facility is subject to compliance with certain financing, reporting and other covenants. Borrowings under the Loan Facility are available at rates based on the Canadian dollar prime rate and the US dollar base rate and bear interest at a rate of prime rate (or US base rate, as applicable) plus 8.75%.

“We are very pleased to enter into this Loan Facility as it further improves our liquidity and enhances our financial flexibility as we navigate through these unprecedented conditions in the workplace environment,” commented Eric Ehgoetz, CEO. “COVID-19 has accelerated our need to right size our cost structure including moving and downsizing our Jamestown (Falconer), New York, facility which was completed on March 31st, 2021 and the addition of new manufacturing equipment which we believe will improve our operational capabilities. The Board and the company’s management team are keenly focused on quickly getting the company to a level of sustained profitability which will enhance Inscape’s operating leverage once economic growth resumes and a more typical operating environment does eventually return.”

About Inscape

Since 1888, Inscape has been designing products and services that are focused on the future, so businesses can adapt and evolve without investing in their workspaces all over again. Our versatile portfolio includes systems furniture, storage, and walls – all of which are adaptable and built to last. Inscape’s wide dealer network, showrooms in the United States and Canada, along with full service and support for all our clients, enable us to stand out from the crowd. We make it simple. We make it smart. We make our clients wonder why they didn’t choose us sooner.

For more information, visit myinscape.com.

Contact

Jon Szczur
Chief Financial Officer
Inscape Corporation
T 905 952 4102
jszczur@myinscape.com