Sabio Holdings Secures $10M Credit Boost for Strategic Expansion

In a strategic move to enhance its financial stability and growth prospects, Sabio Holdings Inc. has successfully secured a $10 million senior-secured revolving credit facility with SLR Digital Finance. This new agreement, which replaces the company’s previous arrangement with Avidbank, provides Sabio with greater flexibility and liquidity at a competitive cost of capital. The facility, with a three-year term, is secured against all of Sabio’s assets and offers advances based on eligible accounts receivable and unbilled receivables. This development positions Sabio for continued leadership in the ad-supported streaming industry, ensuring long-term stability and readiness for future opportunities.

Sabio Holdings Inc., a California-based technology company specializing in ad-tech and ad-supported streaming, has recently completed an important financial arrangement.

Here’s a detailed breakdown of the recent developments:

New Credit Facility Overview

1. New Financial Arrangement:
   • Company: Sabio Holdings Inc. (listed on TSX Venture Exchange as SBIO and OTCQB as SABOF).
   • Partner: SLR Digital Finance (SLRDF), a financial services provider specializing in digital media companies.
   • Purpose: The new credit facility replaces an earlier credit agreement with Avidbank.
2. Details of the Credit Facility:
   • Amount: $10 million senior-secured revolving credit facility.
   • Interest Rate: The rate is the greater of:
     • Prime rate plus 2.15%, or 8.5%.
3. Term: The facility has a three-year duration.
   • Secured: The credit is secured against all of Sabio’s assets.
   • Advances: Funds can be drawn based on:
     • 85% of eligible accounts receivable from Sabio’s U.S. subsidiaries (Sabio, Inc., AppScience, Inc., and FWD Tech Inc.).
     • The lesser of 70% of eligible unbilled receivables or $3 million.

Benefits and Statements

1. Company’s Perspective:
   • Sajid Premji, Chief Financial Officer of Sabio, highlights the advantages of this new facility:
     • Provides better financial flexibility and stability.
     • Offers a more competitive cost of capital.
     • Enhances liquidity and ensures long-term financial stability compared to the previous arrangement.
2. Partner’s Perspective:
   • Randy Mitzman, Managing Director at SLRDF, expressed enthusiasm about the partnership:
     • Praised Sabio’s leadership in ad-supported streaming television.
     • The new facility’s flexible structure is expected to support Sabio’s future growth in a competitive market.

Corporate Governance Updates

1. Amendments:
   • Articles of Incorporation and By-laws have been updated:
     • Purpose: To simplify the conversion process between common shares and restricted voting shares.
     • Framework: Establishes a clearer process for nominating directors at shareholder meetings.
2. Approval:
   • The amendments were approved by Sabio’s shareholders at the annual general and special meeting on June 20, 2024.
   • The changes have been reviewed and filed with the TSX Venture Exchange and SEDAR+.

In Summary, Sabio Holdings Inc. has secured a new financial arrangement through a $10 million senior-secured revolving credit facility with SLR Digital Finance (SLRDF), a specialist in digital media companies. This facility, which replaces an earlier agreement with Avidbank, offers a competitive interest rate of either the prime rate plus 2.15% or 8.5%, whichever is greater, and is set for a three-year term. It is secured against all of Sabio’s assets, with advances based on 85% of eligible accounts receivable from its U.S. subsidiaries and up to $3 million from eligible unbilled receivables.

Chief Financial Officer Sajid Premji emphasized the facility’s role in providing enhanced financial flexibility, stability, and liquidity, while Randy Mitzman, Managing Director at SLRDF, highlighted the facility’s support for Sabio’s growth in the ad-supported streaming television sector. Additionally, Sabio has updated its Articles of Incorporation and By-laws to streamline the conversion process between common and restricted voting shares and to clarify the nomination process for directors. These amendments, approved by shareholders on June 20, 2024, have been filed with the TSX Venture Exchange and SEDAR+.

About Sabio Holdings

Sabio Holdings Inc. is a California-based tech company specializing in ad-supported streaming and digital advertising. It provides advanced solutions to Fortune 100 brands through its key technologies:

• Sabio DSP: Manages and optimizes ad purchases with precise targeting.
• App Science™: Offers AI-driven analytics for audience insights in a cookie-free environment.
• Sabio SSP: Handles ad inventory for publishers, featuring server-side ad insertion for smooth ad delivery.

Recently, Sabio secured a $10 million credit facility from SLR Digital Finance, enhancing its financial flexibility and supporting growth. It also updated its corporate governance to streamline operations. Sabio continues to lead in ad-tech with a focus on innovation and global expansion.

Summary

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