Blackline Safety Signs Term Sheet with ATB Financial to Provide $15 Million Credit Facility

Blackline Safety August 22, 2022

Calgary, Canada —Blackline Safety Corp. (the "Company") (TSX: BLN) a global leader in connected safety, today announced it has signed a non-binding term sheet for a new two-year $15 million senior secured operating facility — with a potential $5 million accordion feature to increase the size of the facility — with ATB Financial. The new credit facility contemplated by the term sheet will, upon and subject to the execution of definitive credit documents, replace the Company’s existing senior secured credit facility with another lender. The current facility was not renewed on the terms presented by the lender and no amounts are currently drawn or outstanding on such facility.

The new facility is expected to provide improved financial flexibility to help the Company manage its operations, while building on its 21 consecutive quarters of revenue growth. The borrowing base under the new facility will be derived from the Company’s monthly recurring revenue with pricing that is largely consistent with the current facility. The new operating facility will be secured, including by a general security agreement over the property of both Blackline Safety Corp. and its significant subsidiaries.

"We are appreciative of the support ATB Financial is providing through this new credit facility, which we believe is especially noteworthy considering the current lending environment where many companies are being asked for stricter covenants and tighter capital availability," said Shane Grennan, Chief Financial Officer of Blackline Safety.” We look forward to finalizing this facility in the coming weeks which, coupled with proceeds from our recently announced bought deal financing and concurrent non-brokered private placement that is expected to close on or about August 31, 2022, will provide us with a more robust capital position to execute our business plan. We would like to thank our previous lender for their support and working relationship over the past two years.”

"The technology sector is a key growing area for the Alberta economy," said Darren Eurich, CEO ATB Capital Markets & Senior Vice President, Business, ATB Financial. “We are excited to partner with Blackline Safety, an Alberta-based global technology company, through this proposed facility and provide them with the capital resources to continue to expand and innovate in their business."

The credit facility is subject to various conditions including the Company raising gross proceeds of not less than $15 million from the Company's recently announced bought deal financing and concurrent non-brokered private placement and the entering of binding definitive agreements in respect of the same.


About Blackline Safety: Blackline Safety is a technology leader driving innovation in the industrial workforce through IoT. With connected safety devices and predictive analytics, Blackline enables companies to drive towards zero safety incidents and improved operational performance. Blackline provides wearable devices, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and enhance overall productivity for organizations with coverage in more than 100 countries. Armed with cellular and satellite connectivity, Blackline provides a lifeline to tens of thousands of people, having reported over 185 billion data-points and initiated over five million emergency responses. For more information, visit BlacklineSafety.com and connect with us on FacebookTwitterLinkedIn and Instagram.

INVESTOR/ANALYST CONTACT

Matt Glover and Jeff Grampp, CFA
investors@blacklinesafety.com
Telephone: +1 949 574 3860

MEDIA CONTACT
Christine Gillies, CMO
cgillies@blacklinesafety.com
Telephone: +1 403 629 9434


Note Regarding Forward-Looking Statements

This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the closing date of the Offering and Concurrent Private Placement and expected exemptions for the Concurrent Private Placement under MI 61-101. Although Blackline believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Blackline can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing date for the Offering and the Concurrent Private Placement may be changed and the noted exemptions under MI 61-101 stated herein may not be available to the Company. The forward looking statements contained in this press release are made as of the date hereof and Blackline undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Blackline will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.