People Can Fly Canada Inc. has signed a letter of intent with the Bank of Montreal for 9.2 million CAD in demand revolving credit facilities.
The financing package allocates 8 million CAD specifically to bridge anticipated Canadian tax credits and 1.2 million CAD for general working capital.
Parent company PCF Group S.A. will serve as the full guarantor for the 9.2 million CAD debt facility.
The credit arrangement is intended to optimize capital structure and support the studio's ongoing operations in North America.
Finalization of the credit documentation is targeted for approximately May 30, 2023, following the initial agreement reached on May 1, 2023.
The agreement remains subject to final contract execution, which is not guaranteed by the current letter of intent.
PCF Group S.A. has entered into a strategic financial arrangement through its subsidiary, People Can Fly Canada Inc., by signing a letter of intent with the Bank of Montreal. This agreement, finalized on May 1, 2023, outlines the terms for two distinct demand revolving credit facilities intended to support the studio's North American operations. The primary objective of this financing is to provide liquidity for general corporate purposes and to bridge the gap for anticipated Canadian tax credits, which are a common component of game development financing in the region.
The proposed credit facilities total 9.2 million Canadian dollars. Specifically, 1.2 million CAD is earmarked for working capital and general corporate needs, while the remaining 8 million CAD is dedicated to financing tax incentives. As part of the arrangement, the Warsaw-based parent company, PCF Group S.A., will act as a guarantor for the full amount of the debt. The subsidiary is also expected to provide customary security interests typical for this type of corporate lending transaction.
This financial move reflects the group's efforts to optimize its capital structure and leverage regional fiscal benefits within the Canadian gaming industry. While the letter of intent establishes a framework for the loans, the finalization of the credit documentation is scheduled for approximately May 30, 2023. The management notes that the commencement of negotiations does not guarantee the final execution of the agreements, though it signals a clear intent to secure specialized funding for its Montreal-based operations.
