IBC Advanced Alloys Corp. announced that certain of the Company's U.S. subsidiaries have entered into a purchase contract and industrial lease with Flatbay Properties LLC. Upon completion of customary closing conditions, including approval of the TSX Venture Exchange, the Purchase Contract will result in USD 3,850,000 in funding for the Company.

Following the repayment of the Company's secured term loan with Sallyport Commercial Finance, LLC (Sallyport), the Company expects to have approximately USD 485,000 of the proceeds for working capital. Pursuant to the Purchase Contract, Flatbay has agreed to purchase the property located at 401 Arvin Road, Franklin, Indiana 46131 from a Subsidiary. Pursuant to the Lease, Flatbay will lease the Property to the Subsidiary for five years, during which the Subsidiary may re-purchase the Property from Flatbay.

The re-purchase price will vary depending on the time of re-purchase, ranging from USD 4,100,250 during the first year of the Term to USD 3,850,000 at the end of the Term. Lease payments during the Term will range from USD 45,850 to USD 50,370 per month depending on the debt service coverage ratio of a Subsidiary. The Purchase Contract and Lease are subject to customary terms for similar agreements in the United States manufacturing sector.

The Company has agreed to pay a cash commission equal to 2.5% of the Proceeds to Baycross Capital Group (Baycross), an arm's length party to the Company. The Company has previously paid total commissions of USD 124,518 to Baycross in connection with the Company's USD 3,000,000 term loan with Sallyport and USD 1,780,000 term loan with Loeb Term Solutions (together, the Loans). The terms of the Loans are described in the Company's press releases dated August 28, 2023 and October 26, 2023, respectively.