Xfit Brands, Inc. Secures New Financing with Crown Financial to Accelerate Growth
Accesswire: August 23, 2016
- XFit Brands finalizes agreement with Crown for receivables financing
- Frees up working capital for XFit Brands to continue global expansion of its one-stop-shop strategy for major fitness outlet operators
LAKE FOREST, CA / ACCESSWIRE / August 23, 2016 / XFit Brands, Inc. (XFTB), a global supplier of fitness and MMA equipment sold at retail and fitness outlets worldwide whose brands include Throwdown and Transformations, today announced that it has secured a new financing arrangement with Crown Financial to fund its inventory requirements as XFit Brands continues to expand its portfolio around the world.
Houston-based Crown Financial, LLC entered into the agreement with XFit Brands following a detailed assessment of XFit Brand's financials and business plan, global manufacturer network, and major customer base and contributions. The agreement provides a non-dilutive Account Receivable-based facility for XFit Brands to access, and frees up needed working capital to the Company to continue funding its growth. As XFit Brands works with and supplies a broad portfolio to more and more of the large Fitness Industry leaders, the Company needed to put this facility in place to provide it the freedom to meet the needs of the industry leaders, and enable it to allocate working capital to other key elements of its business.
Chad Tribe, managing member of Crown Financial, "XFit Brands has a sophisticated group of leaders with the experience needed to scale up what we see as an attractive business. Crown is happy to be an integral part of the XFit Brands story going forward and looks forward to a long-term productive relationship with XFit Brands. Crown will be able to provide in excess of $5 million in receivable financing to XFit Brands."
Dave Vautrin, Chief Executive of XFIT Brands, "This will be a great accelerator of our growth, and provides us the flexibility to gain access to capital in a productive, cost effective manner while not being dilutive to our shareholders. While there are other potential financing partners that provide AR facilities, we found Crown to be unique and very collaborative. XFit Brands has great potential, but has been limited by working cap constraints. With this new facility and the recently announce GHS investment, we have runway in front of the firm that has never looked better."
Xfit Brands is sold in more than 20 countries around the world and has recently accelerated its business by becoming a one-stop shop for the major fitness industry outlet operators. That strategy has been particularly successful and enables the Company to benefit directly from the global growth in health and wellness. Xfit Brands in functional fitness and accessories, Throwdown in impact sports and accessories, and Transformations in programming and training is at the heart of this movement, and is why the company is growing compound annually at more than 40% per year.
About XFit Brands
XFit Brands, Inc., known for its experiential fitness products, 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 products and services spanning Mixed Martial Arts and other high and low impact fitness regimes and owns the trademarks Throwdown trademark registered in 30 countries for its Functional Fitness line and its MMA portfolio, and Transformations in programming. 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 and www.throwdown.com.
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 Brands, including statements regarding XFit Brands' 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 Brands undertakes no obligation to update or revise any forward-looking statements.
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SOURCE: XFit Brands, Inc.