EMERGE Commerce Ltd. announced that the Company has entered into a second amended and restated credit agreement (the ARCA" with its existing lender, which amends and restates the Company's amended and restated credit agreement dated October 27, 2022, as amended (the Previous Agreement), pursuant to which, inter alia, the Company has agreed to repay $10,000,000 towards the outstanding balance under the Previous Agreement. The Amended Facility provides a term of up to 24 months, which is comprised of an initial term of 18-months plus an additional 6-month extension option (the Extension), which may be exercised upon mutual agreement between the Company and the lender. Inclusive of the Extension, the Amended Facility is expected to mature on January 31, 2026.

In conjunction with the sale of WholesalePet (the Transaction), EMERGE has paid $10 million towards its existing credit facility bringing the principal balance outstanding down to $5.85 million from $15.85 million prior to the completion of the Transaction, and $25 million originally. The Company's interest expense savings following the repayment is expected to be approximately $1.38 million annually. The interest rate on the principal amount owing under the Amended Facility remains unchanged at the greater of 9% per annum and the TD Prime Rate + 6.55% per annum.

The Company's lender has also revised and relaxed certain financial covenants to offer the Company additional flexibility based on its go forward plan. The Company remains in good standing with existing lender, which it has worked with since November 2019. No additional fees were paid by the Company in consideration for the Amended Facility.