IBCAdvanced AlloysSells Indiana Property for $3.85M in Sale-Leaseback Deal

IBC Advanced Alloys Corp. (TSX-V:IB), a leading copper alloys manufacturer, has announced the successful completion of a sale-leaseback transaction for its property in Franklin, Indiana. The company sold the property, located at 401 Arvin Road, to Flatbay Properties LLC for $3.85 million.

Why this matters: This deal highlights the creative financial strategies companies are employing to stay afloat and invest in their operations amidst economic uncertainty. The success of such transactions can have a ripple effect on the manufacturing industry, influencing the adoption of similar financing approaches by other companies.

Under the terms of the agreement, Flatbay has leased the property back to a U.S. subsidiary of IBC until April 30, 2029. During this period, the subsidiary has the option to re-purchase the property from Flatbay. The transaction has provided IBC with $3.85 million in funding.

After repaying its secured term loan with Sallyport Commercial Finance, LLC, IBC expects to have approximately $485,000 of the proceeds available for working capital. This strategic deal allows IBC to leverage its assets while maintaining operational control of the property until at least April 2029.

IBC Advanced Alloys Corp. is a leading advanced copper alloys manufacturer that serves a variety of industries, including defense, aerospace, automotive, telecommunications, and precision manufacturing. The company's common shares are traded on the TSX Venture Exchange under the symbol “IB” and on the OTCQB under the symbol “IAALF”.

The sale-leaseback agreement for the Franklin, Indiana property was outlined in a purchase contract dated April 30, 2024. IBC announced the closure of the transaction in a press release on May 10, 2024. The successful completion of this deal provides IBC Advanced Alloys with a significant financial boost while allowing the company to continue its operations at the Indiana facility without interruption.