Tantalus Secures Term Loan from Export Development Canada to Support the Launch of the TRUSense^TM Gateway

Posted June 30, 2023

BURNABY, BC – June 30, 2023 – Tantalus Systems (TSX: GRID) (“Tantalus”), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce that it has secured a debt facility with Export Development Canada (“EDC”), a Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. This loan from EDC will provide Tantalus with up to US$7.0 million of capital to support the anticipated launch of the Company’s game-changing TRUSense Gateway solution as well as provide additional working capital.

The TRUSense Gateway provides utilities with next-generation advanced capabilities that allow them to deal with the mounting pressures of extreme weather events, electric vehicle (EV) and solar power adoption, and the need to upgrade outdated infrastructure in the most cost-effective way possible. Further, because this solution will provide utilities with the ability to access and analyze data from devices located behind the meter, it provides utilities with a level of control and agility to fundamentally improve the management of the distribution grid.

In addition to supporting growth initiatives, Tantalus will use a portion of the EDC loan to refinance the outstanding principal of an existing term loan obtained in connection with the acquisition of Congruitive that was amortizing through the end of 2024. Under the terms of the agreement with EDC, the loan has a six-year term and is interest-only for the first 18 months of the term. Additionally, Tantalus’ existing line of credit facility with Comerica Bank will increase from US$8.1 million to US$8.5 million, providing more flexibility to manage working capital moving forward.

“EDC is thrilled to partner with Tantalus and support its mission to modernize electric distribution grids,” stated Guillermo Freire, Senior Vice-President at EDC. “Tantalus has supported electric utilities over the last several decades and EDC is pleased to support the company, as it propels the future energy transition with its emerging and innovative technological solutions.”

“We continue to make progress towards delivering a next-generation solution that will redefine what the edge of the grid means for utilities,” stated Peter Londa, President and CEO of Tantalus. “Providing a comprehensive platform that delivers true interoperability of data from an increasing number of devices to existing mission-critical systems will enable utilities to improve load forecasting and overall grid performance by accessing the right data at the right time. We are excited to secure capital from EDC in a cost-effective manner to further our vision of helping utilities modernize the distribution grid.”

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