Okay. I think we are ready to kick off. I will start off by telling you your hosts today are Ghassan Halazon, Founder and CEO of EMERGE Commerce, and myself, Mike Murphy, I am the CFO. Before we begin, I have to read off a disclaimer, respecting forward-looking information, which is made on behalf of EMERGE and all of its representatives on this call. Certain statements made on this call will contain forward-looking information, which is based on our opinions, estimates, and assumptions in light of our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors that we currently believe are reasonable in the circumstances. Actual results could differ materially from a conclusion, forecast, or expectation in the forward-looking information, and we caution investors not to rely on forward-looking information. During today's call, all figures are in Canadian dollar, unless otherwise stated.
With that, I will hand it over the mic to Ghassan.
Thank you very much, Mike. Good morning, everyone. Hello, everyone, from wherever you are tuning in. We-.
Hey, I think you are muted, Ghassan.
Mike, can you hear me? Mike, can you hear me?
Yes.
Sorry about that. We should have known. Good morning, everyone. It is really nice to be with you all. We really appreciate you taking time here to join us for this presentation. My name is Ghassan Halazon, for those of you who do not know me. I am the Founder, CEO of EMERGE, and I will just spend a brief moment on myself and on Mike's background before we jump right into the presentation.
For the past 15 years, all I have been doing is building and buying e-commerce brands. There is not a lesson in the book that we have not learned through the years. We have been through it all, and really, we are bringing all our trials and tribulations, all our relationships in this space, to this next phase of EMERGE. We are really excited. Obviously, today's webcast is primarily around the Desjardins refinancing, which was completed and announced yesterday.
Let me say up top that it brings us great pride to be able to say that we delivered on our promise in refinancing a cheaper, longer-term facility with a major Canadian institution. Big credit goes to Mike Murphy, who joins us here as CFO as of this past May. Many of you have maybe have not seen or spoken to Mike yet. Mike has been a great partner, in both running the business and thinking through the next phase of operational growth, but also through executing and ultimately bringing this longstanding refinancing discussion to the finish line with Desjardins.
With that, I am going to jump into the presentation and quickly level set where we are at as a business today, and then eventually go into the primary topic here about the Desjardins financing and what it means for EMERGE today and in the future, and then close out with the big picture as to where we look to go. So high level, EMERGE, TSXV: ECOM. We are an acquirer and operator of profitable e-com brands and technologies, primarily across Canada and the U.S. We are a CAD 30 million revenue business as it stands, about a CAD 1.6 million adjusted EBITDA business. This is based on reported, so it is not pro forma, the additional EBITDA we would have gotten from Viral Loops. Our goal is to get to that sub CAD 2 million level this year, along with the CAD 30 million in revenue.
Also an interesting tidbit that we do not really emphasize, but it is something Mike and I are talking about, we think people deserve to have a better sense of our overall volume. We traditionally have used gross merchandise sales, or GMS for short. That does not really capture the full scope of the wallet being spent across our portfolio, so we are thinking of coming up with a metric that really encompasses both our e-commerce as well as our retail, our advertising, all in one, so that everyone can understand what that full look is, the full volume we capture across the portfolio. It is significantly north of CAD 30 million in revenue. Last year was closer to CAD 40 million. You can imagine or extrapolate that it would be quite closer to somewhere like CAD 45 million or so.
We will be looking at that and adding that color, hopefully, amongst other areas to sort of start sharing more visibility with investors. Along with the CAD 1.6 million EBITDA, we closed Q2 with CAD 4.8 million in cash. That grew from CAD 3.5 million in cash about a year ago. Our gross margin is up to 39%, versus it was about 36.5% prior Q2. We had CAD 2.4 million in cash flow from operations over the last year, in part driven by the amazing eight-year inventory deal we struck with Tee 2 Green. That has been a great boon to our cash flow in those earlier years. As I say, we have three verticals, and we are across D2C and B2B. In terms of our portfolio, I will only spend 20 to 30 seconds on this. truLOCAL is our flagship brand on the grocery side.
We are the market leader in premium meat and seafood subscription. Do not take my word for it, ChatGPT it and ask, and you will likely get that answer. I was very happy to see that we are building a name for ourselves on the AI front as well. On the golf side, we have a 400,000 member, three-brand portfolio. So we have a track record here of having built, bought, and scaled multiple golf businesses, and we are very excited about that category. More recently, we acquired Viral Loops this past March, which was an accretive cash flow positive high margin business. I will also add as we jump into the Desjardins refinancing, that one of the big reasons we did this Viral Loops deal, which at face value may have been a bit of a boring, unsexy, low revenue deal, it was a CAD 1 million+ revenue deal.
A big part of it was the additional EBITDA and cash flow that we knew was important for us for purposes of underwriting this incredible debt refi that brings us tremendous savings and really sort of a graduation to the big leagues of Canadian banking. With that, I would like to pass the mic to Mike, to jump into the Desjardins refinancing. Mike?
Okay. Thanks, Ghassan. We are super excited to have completed this financing. It is transformative for the company, significantly de-risks our balance sheet by a few things. We have got long-term liquidity now, significant financing cost savings, and features and flexibility that we need in order to address the ebbs and flows of the seasonal cash flows in our business. The CAD 5.85 million facility fully replaces our existing loan with an alternative lender, and we are excited about the opportunity to continue working with Desjardins as we enter our next phase of growth. The loan facility is significantly extended to seven years, carries a day one interest savings of 3.7%, and there is a CAD 1 million line of credit that really caters to our seasonal needs.
Overall, year one cash flow savings are estimated to be CAD 400,000, which represents a combination of interest savings, access to high interest savings account, and savings on refinancing costs, plus all the cycles it will save that are not hard costs that are me and Ghassan and the team working through refinancings. We will go to the next slide. This side-by-side analysis is an excellent visualization of why we think this is a transformative deal for EMERGE. First, we go from shorter term, 12-18 month renewals to seven years, which gives us a long-term solution, and it will save those hard financing costs, as well as freeing up our time to focus on growth and operational excellence. The interest rate savings are significant, with the fixed component being significantly reduced. You can see it here from 6.55% to 2.85% plus prime.
One of the really good features in the loan deal was the CAD 1 million operating line of credit, which gives us flexibility through dealing with seasonality and cash flows. The result is longer term visibility, lower cash costs, and higher flexibility. Next slide. This is just kind of a summary to really try and hit the value proposition home in terms of the way we are thinking of it at EMERGE with the new facility in place. Interest costs down, refinancing costs are removed. Our plan is for the cash flow savings to be invested in the growth of the company, as well as being used to pay down the debt over the seven-year term. Again, that is why we are excited, that is why it is transformative, and I will pass it back to Ghassan to talk you through a few more details.
Awesome. Thank you, Mike. We thought that it would be nice to sort of illustrate a couple of slides that kind of focus on the long term, on the big picture impact and really a dramatic shift of this refinancing. This is sort of a first slide. Again, this is illustrative, and just because I think investors and sometimes we frankly are caught up in the day-to-day and the quarters and all of that, it is important to take a step back and really appreciate what we are talking about and what has been captured here under this refi. This is sort of a seven-year lens of how, as Mike mentioned, given the CAD 400,000 or so in cash flow savings that we get from the refi.
Now, between that and of course, in addition to our growing cash flow from the business, we are in a position to start knocking off this debt incrementally year by year over a seven-year period. Will it happen exactly this way? Maybe, maybe not. This is sort of the schedule that we have set up with Desjardins, which by the way, as you may notice, is sort of staged amortization. So it is less pressure on us in the earlier years, and then as we grow, we pay down more debt because we have more cash flow and more time has passed, we probably would have made more acquisitions, our EBITDA is higher, et cetera. But it gives us a chance to start knocking off debt in a very responsible way and bring the overall debt down to zero based on this current setup.
Of course, if we end up having more cash flow for whatever reason, we may decide to go faster. At the end of the day, I think this is just sort of a framework that we have now set up that gives investors the visibility too, on how we start paying down this debt over time, reducing further interest costs, gaining more cash flow, and pouring it back into growth and into opportunistic acquisitions. The numbers at the bottom here, the CAD 2.3 million in interest savings, and ultimately the CAD 3.6 million in total estimated savings, are based on a very simple illustrative example where we are assuming, much like for the past six years, we have generally had no amortization or debt paid down payments along the way with our prior lender.
It was an alternative lender, and we would only pay interest every year, and after a year to 18 months, we would renew the cycle, but we would keep the debt fixed. So CAD 5.85 million has been the debt we have been on for a few years. We have never paid that down once we got there in early 2024. Versus now with Desjardins, we are going to start paying down this debt methodically as the years go by. The example here is comparing on paper what our schedule is with Desjardins versus assuming we had kept the CAD 5.85 million for seven years at 11% interest. So essentially, we are taking this big picture view to illustrate to investors the sheer savings and improvement in cash flow as the years go by. The next slide is sort of just mapping.
As you guys may be aware, the number one thing debt and bank lenders look at is sort of where your debt is, not in abstract, but actually against your adjusted EBITDA. That is sort of a universal thing, not only in Canadian banks, but banks and loans around the world. The debt to EBITDA is the Holy Grail kind of thing. So if we kind of take a step back, it is really remarkable progress that the team has made over the years.
Obviously, when we went public, we had grand ambitions. We took on a huge debt facility. It was a very low interest rate environment, but then that crept up very quickly, as everyone knows, by 2022. Essentially what you are seeing here is the debt facility, the senior facility that is, was CAD 25 million at the peak. Pretty much within a year of us going public.
At the time, the official number we reported for EBITDA was CAD 1.2 million in 2024. Obviously, as you all know by now, we have had to restructure the company, sell off non-core businesses, pay down a bunch of debt, and reset and reignite growth. That is exactly what we accomplished. If you look at EBITDA, obviously dipped to negative CAD 0.46 million, so almost negative CAD 0.5 million in 2024. We had brought down the debt. That was the big step one, was that just the overall quantum of debt came down. We lost a bunch of EBITDA by selling some really, really cool businesses, which was a tough decision we had to make at the time.
By focusing on the businesses we kept and doubling down there, and in an improving interest rate environment, we were able to obviously leverage both operations organically and through acquisitions that were very, very accretive. Credit to the team for executing on Tee 2 Green and now more recently Viral Loops, which is not fully captured here. Now we are in a situation where we have CAD 5.85 million senior against CAD 1.6 million in EBITDA TTM.
However, obviously that does not capture still the next couple of quarters. Q3 we report later in November, but we normally come out with our preliminary results in October. That is expected as the trend has been. We expect that that will hopefully continue to beef up our EBITDA levels and against that same number of debt today, which we will start paying down in future years, as I articulated in the prior slide.
The icing on the cake, and frankly, maybe more than that, because it is probably the main draw here, is interest rates, for us at least, have gone down from a peak of 13.75% to 11% prior to yesterday, last week, I would say. Now we are on a 7.3% rate as of today based on the prime rate that Mike shared under Desjardins. That is a 3.7% reduction against the 11%. One of the investors, funny enough, brought up to me, "Ghassan, that is not a 3.7% reduction. That is actually a 34% reduction in actual math. It is actually a 3.7 percentage point reduction." I wanted to point that out, too. I am sure investors understood what we meant, but actually we have probably really done ourselves a disservice by not highlighting the sheer amount of improvement. We are 6.5 percentage points less than the peak rate.
That goes to show you how far we have come. That is not just our negotiations and our efforts, it is the actual business that is doing the talking. It is our financial progress. It is our improved not only revenue margin, EBITDA, net income, cash flow, cash position. It is all of the above coming together at exactly the same time. As I say, Viral Loops sort of coming in in that last couple of quarters to add the extra EBITDA we were looking for to get the lender, in this case, Desjardins, to the finish line so that we could secure these incredible savings. Okay, a couple of quick slides to wrap up and jump into Q&A, which reminds me, if you guys have any questions, now is a good time to start logging them into the Q&A.
We received a couple of questions from the investor at emerge-brands.com email, but you guys can log them in here in the portal. I am seeing 36 participants today or right at as of this moment, so that is great that you are all taking the time to be with us today. Quickly on share price and cap table. Main thing I want to bring your attention to is with sitting at CAD 0.085 share price as of close of yesterday, we are at a market cap of about CAD 15 million on 180 million shares outstanding, fully diluted, CAD 207 million, and our enterprise value, net of our debt and cash is CAD 18.6 million. The main thing I wanted to bring up there was that as we start paying down debt, and this is for the finance practitioners in the room.
I myself am an ex-investment banker, so I cannot help but think this way, but from a pure hypothetical or practical perspective, the idea here is, if for nothing else, us starting to pay down the debt with Desjardins as we plan to, is hopefully going to mean that, or should mean that more of our enterprise value is going to be captured under the equity value, under the share price side of things. Hopefully, sometimes theory does not happen overnight or does not happen exactly as it is supposed to, but that is the theory, and we are excited about the logic that we are going to be continuing to pay down debt while continuing to grow our business. You have heard about me and Mike, so I will not go there again.
I will spend just another minute on Mike, mentioning the fact that he actually. One of the things that made him very attractive to us as a candidate back in April, May, was the fact that he has been there, done that. Mike has come from a public company that has since gone private, that was a CAD 20 million revenue business at the time he joined, and he scaled the finance team to CAD 150 million run rate, by the time he left. There were other prominent names involved in the story afterwards, including FAX Capital and other recognized names. So it was a big name, and Mike is obviously, notably I should say, also has worked on a really. If I thought the EMERGE restructuring was tough and Mike was on Dye & Durham, which was a piece of work, if anyone knows anything about that story.
So for him to have endured and been involved and experienced that was very attractive to me to see them go through the hardships, albeit, we are past the hardships. We are ready to play offense here, and that is why we have decided to invest in a talent like Mike. I also want to highlight Maurice Finn, who is really a silent assassin in the background on the operational front. He has had a tremendous track record operating Tee 2 Green to 39% growth in EBITDA in its first. Sorry, revenue growth in its first year, and 59% adjusted EBITDA growth, both in that year one. We are very pleased with Tee 2 Green and what it has meant for us. I negotiated the deal and spent time with it, but once we closed that deal, it was all Maurice and the team executing.
He's done a phenomenal job there, and he's done extremely well with JustGolfStuff and previously with WagJag, which we sold for 2x its purchase price. I want to highlight our two additional board members. I am a director of the company, of course, but Ian McKinnon is our chairman of EMERGE, and also leads the compensation and governance committees. Ian notably was on the board of Constellation Software Inc., one of the mega technology success stories in Canada. I think the second or third most valuable company, even after coming down from CAD 90 billion or CAD 100 billion to CAD 50 billion or CAD 60 billion, but who's counting? Ian comes from a remarkable background and a very patient long-term view on things.
He's been a tremendous mentor to myself, and now more recently to Mike, in helping think through structuring governance, and setting us up for incentives and long-term success for the company to grow up. John Kim, who was on our board pretty much since the go public, is also another independent director and leads the audit committee. Notably, John is a founding or an early board member with WELL Health, and that's another terrific Canadian story, a billion-dollar roll-up in health tech. I will say also, for what it's worth, this is a team, every single one on here, that's aligned, that's long-term. None of us have ever sold a single share. This is all public knowledge. I've purchased north of CAD 150,000 through the years in ECOM, never sold a single share.
John Kim recently invested CAD 50,000 at the CAD 0.10 private placement round to close the Viral Loops transaction in March. Again, we are long, we are strong, and we are united and aligned around what we're trying to achieve here over the long run. Speaking of priorities for this year, they're boring, right? There's three of them. Continue the operational execution.
We hope our Q2 CAD 1 million EBITDA quarter, CAD 9 million revenue quarter, best quarter in our view, and numerically since 2021, since the early go public years from a pure, sort of hadn't hit CAD 9 million in a long time, hadn't hit CAD 1 million since late 2021. So I think we're starting to see these numbers come together. Keeping in mind, we're also making investments in people like Mike and in systems because this is no longer just a scrappy little basement situation where we're restructuring things.
We are now back to growth. We've made two acquisitions over the last 15-18 months, and we're looking to do more and play offense more. AI is becoming a bigger topic. At the risk of sounding buzzy, I'm not going to spend much time on it, only to say we're taking it seriously. We're spending time on systems. We're enhancing, we're automating where we can, and we're finding growth and savings opportunities. In terms of accretive acquisitions, Viral Loops meets our criteria. It was an opportunistic deal. It was a cash flow deal. It's enhanced our margins, and it's enhanced our bank account. Thirdly, our goal was to reduce debt and interest expense and enhance cash flow. We're very pleased to share that we've secured a substantially cheaper, longer-term facility with Desjardins Group. This is a slide on just sort of our comparables.
It's very hard to find exact comparables in Canada in small cap. We have a broad list of peers with the caveat that some of them are a bit out there and a bit different and a bit different size. At the end of the day, I like to say, look, however, and I encourage investors to do this exercise themselves. Whatever comps or peers you look at, if you choose 8 or 10 of them, and this is, again, my banker hat, you're going to find it very challenging to find EMERGE anywhere near what many others are valued. And in our case, sort of approaching the 0.6 times revenue for 2026, 9.5 times adjusted EBITDA.
I don't like to comment too much on share price and every little detail, but I like to kind of, in abstract, talk about what I think was holding us back for a while, because a lot of times I get the feedback that, hey, the P&L, the results are solid. They're consistent year after year, quarter after quarter. I like to think that perhaps, and some of the feedback I've gotten along the way is people were trying to understand the balance sheet more. The P&L wasn't the issue. And I really feel we've done a great job and really sort of a knockout blow here in terms of bringing a big name, a long-term facility, a cheaper facility, and a plan that we're articulating to methodically pay down debt and grow the business very responsibly.
Hopefully, investors take that into account and do their own math and their own comparable analysis as well as to where EMERGE sits and what it would look like at quote-unquote, their version of fair value. Last slide before we jump into Q&A. Another reminder, if anyone wants to throw in some Q&A, now is a good time. This is sort of as we think about how EMERGE evolves over the coming years, and we plot our path from CAD 30 million revenue to CAD 100 million to CAD 200 million revenue and CAD 2 million EBITDA, or sub CAD 2 million EBITDA like we're on track to achieve, to CAD 20 million EBITDA.
And as we think about this, wanted to highlight sort of the key tenants right now and the key areas of growth. truLOCAL and the golf business, both phenomenal opportunities with great runway in their own right.
And now Viral Loops, the B2B sort of cash machine in the background, asset light, low seasonality. And so this idea is that we really liked, for example, what we've done in the recent acquisitions in terms of pricing and so forth. And I think that as we go through this, one thing is for certain, we're not going to buy anything that risks the house. We're not going to be irresponsible. We're not going to take debt right now, right? We're not looking to add more debt, and we're going to buy stuff that fits what we're doing, and there are reasons that we do it. That goes back to the first thing I said today, which is it's very important to us.
We're proud of the fact that we can say we articulated what we wanted to achieve on the debt refi, on the accretive acquisition, on bringing the business back to growth. People have watched us now for a few years delivering on our promise. Now when we say we're going to be responsible, we're going to buy stuff that fits, we hope people take that seriously, that we didn't clean this up for nothing. This is a new look. It's a new EMERGE. We've learned from our mistakes, and we are united in our mission here to drive the ship forward. With that, I would like to open it up to questions. Thank you very much, everyone, for listening. I'm going to take a moment here. As some of you may have noticed, we don't have an IR company running around doing this stuff for us.
We keep it scrappy, which reminds me, you should all check out emerge-brands.com, our new corporate site, which we brought in-house recently. We've cut the third party that runs the corporate site because we feel like there's no point in paying annual fees to a third party when we could build it ourselves one time forever. Check that out, by the way. It's a nice facelift that the team did, but more importantly, it's free forever. We got a couple of questions here on the Zoom that I wanted to share. First one is, what are the conditions for the working capital line? That's in reference to the CAD 1 million revolver, by the way. Are you able to take advantage of it as needed at all times, or are there certain requirements? Mike, why don't you handle that one?
Sure. Yeah, so it's a good question, and it's a good news story. We were able to negotiate the line of credit to be available immediately. It functions just like an overdraft facility. I'd say this is a great example of the partnership with Desjardins. We told them what our seasonal needs were, and they were able to deliver in the negotiations. The next few months are a great example of where seasonality impacts us. It's a big inventory purchasing period for the golf vertical. We now have some additional flexibility for that. I should mention that if we were to go or need to go above the CAD 1 million, there is an asset-based methodology to get more funds. That's not as flexible, but it's an option that's out there.
Thank you, Mike. All right, so we got another question, also anonymous. "You've guided to roughly CAD 400,000 of year one cash flow savings. How should we think about the allocation of those savings between debt reduction, organic investment, and potential acquisitions?" It's a very good question, and it's a type of conversation we're having with management and our board. I'll give you sort of early guidance. I think our number one priority is like we've, and we kind of alluded to this in the PR yesterday. Certainly, those savings are meant to start reducing the debt. I would say that's the number one priority is as we think through this, build up that war chest and first things first, let's bring down that debt while our EBITDA is going up. Let's improve our debt to EBITDA to the maximum level that we can.
And let's also remember that reducing debt reduces further interest expense and ultimately is as good if not better than an acquisition. Step one, I would say, is primary, debt reduction responsibly. Secondary, also thinking through weighing. I would put organic growth and acquisitions in the same bucket of comparison because we got to always weigh, if a certain amount of cash is available, A, if we invested in organic growth, I'll use an example, acquiring customers for truLOCAL or opening more roadshows for Tee 2 Green. We have to decide, is that better spent than maybe buying an opportunistic acquisition? That, as an example, Tee 2 Green was phenomenal. 2.2 times EBITDA acquisition. We got CAD 1 million in EBITDA. We grew that to CAD 1.5 million within a year. Can't do that on organic.
However, sometimes organic opportunities selectively may be very enticing, and it also depends on the quantum of cash we're talking about. I think we're going to have to weigh organic and acquisitions. But I think we start with debt reduction as we think of it. Then the acquisitions, we're always looking for opportunity. We're always looking for the next Tee 2 Green or Viral Loops. Another question is, this is a, maybe I'm going to just say to this investor. It says, "What are Ghassan and Mike and Maurice's emails?" Please email investor@emerge-brands.com and we will provide those emails. Thank you. Sorry about that. "How should investors think about the remaining convertible debenture now that the senior refinancing is complete? Is the expectation repayment, extension, conversion, or another solution?" The color I can share on this one is, maybe also a little bit of background.
The convertible note holders originally had about CAD 2.8 million in a debenture that was done years back. In early 2024, when we sold off the wholesale pet business, paid down the debt, refreshed the business, our message to them was, "We're embarking on this refresh," and we were fortunate to get their support, and they converted CAD 1.4 million back then in 2024, at CAD 0.135, which is the exercise price of this note. They were left with about CAD 1.39 million, give or take. These note holders are good people. They're supportive, and they've been patient. We're in touch with them. Obviously, there's only so much I can disclose. We're not going to give any color yet. Obviously, it's something that we feel is important. We want to make sure we find a win-win and a supportive situation. They've been good people to us.
We've been delivering on things we promised them operationally. I'm optimistic and hopeful that we're going to find a way for it. I think long. Just to sort of align with big picture priorities, we are looking to reduce debt. We are looking to strengthen the company, to strengthen the balance sheet. But there's a number of different ways to do that or accomplish it, and I'm certainly looking forward to taking another strong step on that front, which I also believe is an area for us to delever further. Okay? We'll kind of keep it at that for now, but it is a good question, and it's a fair one. Maybe for reference for folks to appreciate, we pay about 10% fixed rate on that one, so it's about CAD 140,000 interest a year right now.
Hopefully, if there is an opportunity again to find a win-win, that would also be something that would add to the CAD 400,000+ savings with Desjardins and get us to the CAD 500,000+ range overall, hopefully. We are excited about the possibilities, but we cannot comment on exacts just yet. Then another question as well, "Do you have an ability to make acquisitions without a raise? If so, what are the types of acquisitions you are most interested in?" The answer is yes, but it depends on the type of acquisition. It is funny.
Your two questions tie into each other because, of course, we cannot go make a CAD 2 million EBITDA acquisition that requires CAD 6 million or CAD 8 million upfront, and that is not what we are looking to do. You might have heard me say during the presentation that we are not looking to risk the house.
We are not looking to run before we can walk. We really like the momentum of what we have done here. We like taking the business from around CAD 19 million in revenue back in 2024 to CAD 27 million to CAD 30 million, hopefully to CAD 35 million or CAD 33 million to CAD 38 million to CAD 47 million to CAD 55 million. This is how we are thinking, right? If there is a knockout blow and it is an incredible opportunity, like I get emails occasionally saying, "Oh, a company like Goodfood went through CCAA.
Will you jump on that?" Well, yes, it is CAD 80 million revenue, but it is unfortunately for them, a really difficult situation. We just came out of a restructuring. We do not want to go crazy, go buy something huge that we have no idea how to operate and deal with the problems that a lot of people have tried to solve and haven't been able to solve.
We would rather buy cash flow today. Less risk. We would rather buy it at a really cheap multiple, and we would rather not risk the house. It is very, very simple, right? In a climate like this, if we can identify the next three times EBITDA acquisition or loosely, two to four times EBITDA, let us say. If we can structure it the right way and we can make sure that certain of our cash and cash flow that is being generated can go towards it in a creative structure, we may do it.
We may do another nice tuck-in acquisition if it makes sense and it aligns. Desjardins is supportive, big picture. This is the beauty of having a seven-year term, is we are embarking on a major partnership. It is a seven-year term, and we have built a reputation for ourselves, Mike, over the last six years or so.
We have been renewing that one-year term six years in a row. The joke with Desjardins is if we are going to renew the seven-year term six times, that is potentially a 42-year term. We are not ones to sit around. We have a great partner now, and we are going to look at stuff. The main thing is, I would tell investors, we are not looking to add more debt again right now. We are looking to beef up operations, EBITDA, and be opportunistic.
If we can go get a CAD 0.5 million in EBITDA with a CAD 0.5 million to CAD 750,000 in cash and some deferred structure that fits the bill, hey, we will do that. We are looking at things of that nature. TBD, but in terms of the verticals, grocery and golf, and B2B enablement, those are loosely sort of the three verticals we are looking at this time.
There's another question. I'm going to skip it. It's the same one roughly on the convertible note as well, and do you expect to convert? We've talked about that. Here's another one. How's the integration of Viral Loops within the EMERGE family enhancing the results of the company? It's a good question. I think when we announced Viral Loops, I think people honestly like the math of it. They understood what we were doing, but they didn't find it to be all that sexy. My message to everyone today is, what I couldn't say back then that I can say now is that we didn't only buy Viral Loops' EBITDA for 3 times EBITDA, or their cash flow. Let's talk cash flow. We didn't buy their CAD 500,000, CAD 600,000 cash flow net of fees and legals for the acquisition, all of that alone.
We bought it to pave the way for another CAD 400,000 in cash flow savings today that we can announce. That is transformative. It's not just the cash flow savings, it's the de-risk of the yearly refis, as Mike mentioned. It's the access to the line of credit. It's the relationship with Desjardins. In a way, that was one of the biggest reasons we did, if not the biggest reason, was a financial improvement to the profile. You can go back to the Viral Loops press release and judge us by it, because it really specifically talked about enhancing financial, enhancing cash flow. The part B, which we won't glamorize or sensationalize, we won't say there are crazy synergies with the EMERGE brand portfolio. However, it is additive, and that's important. We are using Viral Loops.
I'll give you a prime example with truLOCAL. truLOCAL is celebrating its 10-year anniversary, and we're now doing monthly contests. We did them quarterly. Now we're going to launch monthly. I don't know if anyone's a fan of Wealthsimple and their monthly millionaire contest. We're gaining inspiration from that, too. Viral Loops is the type of technology that we're building for ourselves, but it also comes with hundreds of clients, and it's our job in the background now to support that team to, for example, build that Wealthsimple monthly millionaire widget so that we can go and sell it to other companies like the Neo Financials or the banks that want to plug in quickly into the contesting game.
Someone like Wealthsimple understands the value of customer acquisition, and I think that we are adding more and more features to truLOCAL in particular, and then next step is for Golf by Q4. We'll keep you updated on that. I think it's delivered on its financial promise to set the company up and to drastically improve the balance sheet. I think that is all the time we have here. I want to encourage folks. I'll take one last one just because I want to address this anyway because it brings up a good point. One more question is, can you provide a breakdown of EMERGE business units, UnderPar, JustGolfStuff, Tee 2 Green, truLOCAL, include revenue, gross margin, gross profit, adjusted EBITDA for each? It's a good question, Philip. I think here's how we're thinking about things.
The company's starting to grow up. Obviously, adding Mike was a big step on the financials and setting up the systems and the analytics and all of that. I think you'll start seeing, I'm not going to commit to exactly what you asked in terms of every brand, because that's quite a bit of additional work for us. We got to keep in mind, we are a tight team here. I think we're going to want to start adding some disclosure that gives better color to investors, right? Because when we were in that restructuring phase for two, three years, why go through the trouble? Someone gave me the advice, run it like a private company other than the public requirements, right, at the time. We're coming out of that now, and we're interfacing with you guys, and I would say that it's awesome, actually.
We still have 33 people, so if only three people dropped off, Mike, that's less than 10% churn. That's a good model to run with. I think we're going to be giving more visibility to the extent that, to what extent, I'm not sure, but you can expect more. I'll close on this note because it's important, Philip, to the question you're asking. People forget that when we say EMERGE's approaching CAD 2 million EBITDA reported, that includes the holding company, the public company, running around doing audit, legal, admin, essentially, right? What we don't do a good job of is demonstrate that our brand level EBITDA, if you just looked at the sum of the parts, I'll use my banking hat again. truLOCAL only, the golf portfolio only, Viral Loops only.
If you look those three verticals on a standalone basis with their respective teams and management, we're sitting on north of CAD 3.5 million in adjusted EBITDA, right? Probably closer to CAD 4 million, depending on how we finish the year. Actually, people don't appreciate, you got to think of this from a pure sum of the parts value perspective. What do you think CAD 4 million EBITDA is worth? Is it worth CAD 15 million market cap? I don't know the answer. I'm not going to tell you what the answer is, but it's my job to paint the picture that CAD 4 million in brand level EBITDA or thereabouts, I'll use CAD 3.5 million to CAD 4 million. Is that worth CAD 20 million EV, like enterprise value? Again, you guys do the math.
Our job, Mike and I, now, is to shed light on the actual business, the underlying business. Because the pub co is the pub co. You only got one me, you only got one Mike. You got an audit, which we negotiate hard on and make sure the prices are right? Our systems are tighter. AI is making things possible that we don't need to grow the team right now beyond the core group that we have for HQ. We don't have an IR company. We don't even have a company that takes care of our website. We're tightening all of that up, right? When we go buy the next CAD 5 million in EBITDA over the next few years, hopefully, we don't have to grow the HQ amount anywhere near that. We might grow the HQ amount 10%, but we can grow EBITDA 5x in the coming years.
That's the idea here is like, well, folks, I feel like investors really need to understand that the brand level EBITDA, if I just woke up one day and the board woke up one day and we felt the best interest of the company is to sell these businesses individually, which again, I don't think that's the goal or the plan, just to be clear. But if you looked at the sum of the parts of what those would bring, would they be CAD 20 million, CAD 18 million enterprise value, or would they be more? I have my views, of course. We're a CAD 30 million revenue company.
We're approaching a CAD 45 million GMV company. We're a CAD 3.5 million, CAD 4 million brand level EBITDA company. We're a CAD 2 million all-in EBITDA company. So obviously we have our views on valuation, but again, it's not our job to comment.
But we will be giving more disclosure as the quarters, and certainly by next year, is something Mike and I are working on. We really, really appreciate everyone's time and questions. Sorry there were a few more we couldn't get to. We allotted 45 minutes for this call. I'm going to take that as folks were engaged and enjoyed our feedback and our insights. If there are things that we haven't addressed or questions we haven't addressed, please email investor@emerge-brands.com. We will make sure one of us attends to them, in a timely fashion. But we really appreciate everyone's time. We're happy to share that we delivered on our promise. I hope you are too, but hopefully this is still the start of a multi-year journey of delivering on what we say we will. Thank you everyone, and have a great day.