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NFS Leasing Canada Provides Up to $11.4MM in Equipment Finance to Flow Beverage

November 17, 2023, 07:10 AM
Filed Under: Beverage

NFS Leasing Canada Ltd. (NFS) has extended its support to Flow Beverage Corp. by providing equipment financing for up to $11.4 million. This financing allows Flow to add a fourth production line and increase capacity for the Aurora production facility. In addition, for general corporate purposes, Flow has entered into an interim loan financing agreement in the form of a $5 million senior secured loan with NFS with a maturity date of May 13, 2024, which bears interest at the rate of 2 percent per month.

Flow also announced it entered into a manufacturing agreement with BeatBox Beverages (BeatBox), known as "The World’s Tastiest Party Punch," whereby Flow will manufacture and package BeatBox’s innovative line of Party Punch alcoholic beverages. The agreement has a term of five years, with commitments for BeatBox to purchase certain minimum annual volumes which, in the aggregate, equate to approximately $115 million in revenue over the life of the agreement. Additionally, the agreement has a take-or-pay provision requiring that BeatBox pay Flow the equivalent of 85 percent of the value of the difference between the applicable minimum annual volume and the actual volume purchased during the relevant 12-month period.

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