Tornado Global Hydrovacs enters into credit facility with TD

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CALGARY, Alberta, July 14, 2021 (GLOBE NEWSWIRE) – Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH: TSX-V) is pleased to announce that it has entered into a revolving operating line of $ 3,000,000 of credit (the “Operating Line”) and a term loan of $ 4,875,000 (the “Term Loan” and, together with the Operating Margin, the “TD Facility”) with The Toronto-Dominion Bank (“TD”). A portion of the TD Facility will be used to repay the balance of a non-interest bearing seller’s assumption mortgage secured by the Company’s facility located in Red Deer, Alberta (the “Red Deer Facility”) and the TD Facility balance will be used for general working capital purposes.

Under the terms of the TD Facility Agreement, the operating margin bears interest at a floating rate equal to the annual prime rate established by TD, currently 2.45% plus 0.75%. Refunds under the operating line will be made on request. In addition, the Term Loan bears interest at a fixed rate of 2.83%, the advances being repayable, plus interest, monthly until maturity.

The TD Facility is secured by a first ranking security interest in all current and future covenants, property and assets of the Company and its subsidiary, Tornado Global Hydrovacs (North America) Inc., and by a first ranking mortgage charge on the Red Deer Facility.

“The TD Facility significantly improves our working capital that will be needed to fund an increasingly robust outlook for Tornado hydrovac purchase demand,” said CEO Bill Rollins. “This financing facility follows the recent announcement where we have significantly strengthened our management team by adding Brett Newton to the role of President and Chief Operating Officer. Brett’s 20 years of experience in the hydrovac industry should also contribute to our optimistic outlook for Tornado hydrovac demand.

About Tornado Global Hydrovacs Ltd.

The company designs and manufactures hydrovac trucks as well as heavy-duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction markets. Hydrovac trucks use high pressure water and a vacuum to safely penetrate and cut through the ground to expose critical infrastructure for damage-free repair and installation. Hydrovac excavation methods are quickly becoming a standard in North America for safely digging in urban areas and around critical infrastructure, dramatically reducing infrastructure damage and associated fatalities. In China, the Company’s subsidiary is mainly used to source certain parts for the Company’s operations in North America.

For more information on Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact:

Bill Rollins

Brett Newton

Chief executive officer

President and Chief Operating Officer

Telephone: (403) 204-6333

Telephone: (416) 522 -6390

Email: [email protected]

Email: [email protected]

Advisory

Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words “anticipate”, “should”, “may”, “”, “; These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this press release should not be unduly relied upon. These statements include statements regarding the use of the TD Facility. Actual results could differ materially from those anticipated in these forward-looking statements due to prevailing economic conditions and other factors, many of which are beyond Tornado’s control. The forward-looking statements contained in this press release represent Tornado’s expectations as of the date hereof and are subject to change after such date. Tornado disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.

Neither the Bourse nor its regulatory services provider (as that term is defined in the policies of the Bourse) accepts responsibility for the adequacy or accuracy of this press release.


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