- Provides Working Capital at a Reduced Interest Rate to Facilitate Organic Expansion of Core and Newly Acquired Businesses
- Extends Existing Financing Facility into July 2020 While Also Converting Accrued Interest into Common Stock
LAKE FOREST, CA / ACCESSWIRE / December 19, 2016 / XFit Brands, Inc. (OTCQB: XFTB), a global supplier of fitness, MMA equipment and Sports Surfaces sold worldwide whose brands include Throwdown, Transformations, EnviroTurf, and GlideBoxx, today announced that it has received an additional investment from PIMCO of $1,000,000 into the Company. In addition to the investment, the revised agreement includes an extension of the historical financing agreement to an aggregate of $3.5 million, conversion of accrued interest into common stock, and a lowering of the interest rate on PIMCO's investment to an annual rate of 9%.
XFit Brands recently completed the acquisition of GlideBoxx and EnviroTurf, and has been rapidly growing its business around the world. The Company has grown its revenues at a double-digit rate for the past 3 years. The acquisition of GlideBoxx and EnviroTurf added significant scale with an estimated pipeline of potential projects in excess of $20 million according to the Sports Division President, Jim Bateman. The new additions also facilitate penetration of multiple new potential outlets across college and other campuses, where EnviroTurf Sports Surfaces are currently placed and have longstanding relationships.
The new funding from PIMCO, includes a 3 year extension of PIMCO's original financing that was put in place on June 10, 2014 and now expires in July of 2020. As part of the extension, PIMCO lowered their annual interest rate on the existing and new financing to 9% annually, resulting in a lower interest expense for XFit Brands of approximately $70,000 annually. PIMCO, already an equity investor in the firm, decided to further invest in XFit following recent revenue and operating profit improvement and the significant scale addition that EnviroTurf represented. To facilitate the transaction, XFit reduced the exercise price of the associated purchase warrant to the market value as of the date PIMCO committed to the new investment.
David E. Vautrin, Chief Executive Officer of XFit Brands, commented, "PIMCO's additional investment and conversion of accrued interest into common stock are certainly a reflection of their confidence in our ability to execute our business plan. PIMCO is one of the most prestigious financial institutions in the world, and now also an important equity partner in our Company. XFit Brands continues to drive industry leading growth, and the investment from PIMCO will enable us to capture the full potential of the new businesses, and provide working capital to continue to drive superior organic growth across the entire XFit Brands portfolio."
About XFit Brands®
XFit Brands, Inc., is one of the leading suppliers of functional fitness brands, products, and equipment sold at retail and fitness outlets worldwide. The company provides a full portfolio of functional fitness products, Mixed Martial Arts gear, and other high and low impact fitness regimes and owns the Throwdown® and XFIT Brands® trademarks registered in more than 30 countries for its Functional Fitness line and its MMA portfolio, Transformations® in programming and training, GlideBoxx® sports training system, and now EnviroTurf Sports Training Surfaces. The company's portfolio of brands and products are sold in many countries around the world and supply many of the leading Gym and Fitness outlets throughout the United States. The Company's websites are www.XfitBrands.com, www.Throwdown.com, www.GlideBoxx.com and www.EnviroTurfServices.com.
About PIMCO®
PIMCO is a leading global investment management firm, with offices in 12 countries throughout North America, Europe, and Asia. Founded in 1971, PIMCO offers a wide range of innovative solutions to help millions of investors worldwide meet their needs. Our goal is to provide attractive returns while maintaining a strong culture of risk management and long-term discipline. PIMCO is owned by Allianz S.E., a leading global diversified financial services provider.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition, and achievements of XFit, including statements regarding XFit's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. XFit Brands competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission may affect the Company's operations. Unless required by applicable law, XFit undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries please contact:
Scott Cameron
[email protected]
(949) 916-9680
Websites:
www.XFitBrands.com
www.Throwdown.com
www.GlideBoxx.com
www.EnviroTurfServices.com
SOURCE: XFit Brands, Inc.