Xylitol Canada Inc. announced its subsidiary, Xylitol USA, Inc. has entered into an asset-based lending arrangement with Bibby Financial Services Inc.

Xylitol USA has entered into a two year combined $2.5MM asset-based credit facility arrangement including an accounts receivable line of $2 million and an inventory line in the amount of US$500,000 with a letter of credit sublimit of $500,000.

"Our new relationship with BFS allows us to continue to recapitalize Xylitol's balance sheet to fund its future growth as it continues to restructure its operations and transform its natural sweetener consumer packaged goods operating platform," said Steven Haasz, CEO of Xylitol.

Proceeds of the financing will be used for working capital and general corporate purposes.

Bibby Financial Services is a leading independent financial services partner to more than 9,500 businesses worldwide providing more than $1 billion in funding globally. With over 40 operations in 14 countries spanning Europe, North America and Asia, we provide asset-based lending and factoring solutions to help businesses grow in domestic and international markets.