Luxor Finalizes Cdn $ 5,275,000 Credit Facility with HSBC to Finance Turnkey Framing Contracts in the USA which exceed Cdn $ 16 million
VANCOUVER, British Columbia, May 04, 2016 (GLOBE NEWSWIRE) — Luxor Industrial Corporation (TSX:V:LRL) (OTC:LXRRF) is pleased to announce that it has finalized a Credit Facility of Can $ 5,275,000 with HSBC Bank Canada which includes an Operating Line of Cdn $ 1,500,000. The Credit Facility also provides a Standby Letter of Credit/Guarantee Loan facility, a Foreign Exchange Loan facility and a Mastercard facility.
The operating line will be used to finance turnkey framing contracts that have been awarded to the Company’s subsidiary Mill Frame LLC. Turnkey contracts include Luxor supplying all materials and site labor which will be covered by the operating line as well as prefabrication of walls and floors by Luxor’s subsidiary, Mill Frame Inc. Contracts for 2016 exceed Cdn $ 16,000,000.
Previously Luxor completed insurance coverage with EDC (Export Development Corporation) for any payment defaults for 90% of all product exports sales and 90% of the value of turnkey framing contracts. EDC will approve foreign customers on each contract prior to the insurance taking effect.
Luxor previously announced it was partnering with a Trading House to assist with the financing of the framing materials for the US $6,000,000 turnkey framing contract for the Heron’s Key project in Gig Harbor, Washington by The Weitz Company. The ability to secure material financing through lumber traders together with the HSBC operating lines decreases the need for Luxor to raise funds through equity financings.
Terry Lashman, CEO of Luxor, comments, “We are very pleased with the developments with HSBC and EDC and with the efforts put forward by the management of these organizations to finalize the funding and insurance arrangements respectively. The HSBC Operating Line pretty well eliminates the need to raise funds for financing these and additional contracts which is a great benefit the shareholders as it minimizes share dilution.”
About Luxor Industrial Corporation
Luxor has vertically integrated through the recent acquisitions of turnkey framing companies in Canada and the United States. The Company now distributes Pre- Fabricated Wall Panels and a complete line of Multi-Family Engineered Lumber. http://www.millframe.com
Luxor is involved in the development, engineering, manufacturing and marketing of engineered wood products. In the industrial sector, it manufacturers wood mat products. In the residential sector it manufactures its patented IBS 2000® engineered floor bridging, fire protected architectural wood products, and FastFrame™ wall components. For further information, visit Luxor’s website at www.luxorcorp.com.
This news release contains forward looking statements. Although Luxor believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Luxor can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Additional information may be accessed through the Sedar website: www.sedar.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT: Contact: Luxor Industrial Corporation Terry Lashman (800) 665-2454 (604) 684-7929 John Taylor (877) 496-4355 (604) 864-9601 www.luxorcorp.com