Trakopolis Secures USD $3.5 Million Credit Facility from Silicon Valley Bank
February 14 2018 - 6:40AM
Trakopolis IoT Corp. (TSXV:TRAK) ("
Trakopolis" or
the "
Company") is pleased to announce that it has
entered into a new USD $3.5 Million secured credit facility with
California based Silicon Valley Bank, the bank of the world’s most
innovative companies and their investors. The credit facility
consists of a 36-month term loan of USD $1.5 Million (the
"
Term Loan") and an accounts receivable line of
credit of up to USD $2 Million (the "
Revolving
Line"). The Term Loan bears interest at a rate of US
prime plus 1.5% and the Revolving Line bears interest at a rate
ranging from US prime plus 1.75% to prime plus 2.25% based on
certain operating metrics. Proceeds from the Term Loan will
be used to prepay and retire the Company's outstanding indebtedness
with B.E.S.T. Funds. The Revolving Line will be used to fund
the Company's growth strategy.
“Reducing our cost of borrowing to under 7%
based on today’s rates, with no dilutive instruments attached, and
adding a revolving line of credit provides the Company with a debt
facility that is aligned with our focus on recurring revenue,” said
Trakopolis’ CFO, Richard Clarke. “We welcome the financial backing
of Silicon Valley Bank as we continue to grow our customer and
subscriber base.”
“Trakopolis has created an innovative platform
and achieved notable growth,” said Ryan Kirschling, Director for
Silicon Valley Bank. “We are pleased to support Trakopolis in their
global efforts to advance the industrial internet of things.”
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank has
helped innovative companies and their investors move bold ideas
forward, fast. Silicon Valley Bank provides targeted financial
services and expertise through its offices in innovation centers
around the world. With commercial, international and private
banking services, Silicon Valley Bank helps address the unique
needs of innovators. Learn more at svb.com.
About Trakopolis
Trakopolis is a Software-as-a-Service (SaaS)
company with proprietary, cloud-based solutions for real-time
tracking, data analysis and management of corporate assets such as
equipment, devices, vehicles and workers. The Company’s asset
management platform works across a variety of networks and devices.
Trakopolis has a diversified revenue stream from many verticals
including oil and gas, forestry, transportation, construction,
rentals, urban services, mining, government and others.
Forward-looking Statements
This news release includes certain
“forward-looking statements” under applicable Canadian securities
legislation that are not historical facts. Forward-looking
statements involve risks, uncertainties, and other factors that
could cause actual results, performance, prospects, and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Forward-looking statements in
this news release include, but are not limited to, statements
regarding: Trakopolis' anticipation that the credit facility will
provide the Company with the financial flexibility to execute on
its growth strategies. This anticipation is dependent on a number
of assumptions and risk factors, including Trakopolis' ability to
meet or exceed its future earnings and cash flow targets and the
Company’s ability to maintain compliance with its covenants and
other requirements contained within the credit facility. A failure
to comply with the obligations in the credit facility could result
in a default which, if not cured or waived, could result in an
acceleration of the credit facility's repayment. If repayment of
the credit facility were to be accelerated, there can be no
assurance that Trakopolis' assets would be sufficient to repay in
full that indebtedness.
Consequently, all of the forward-looking
statements made in this press release are qualified by these
cautionary statements and other cautionary statements or factors
contained herein, and there can be no assurance that the actual
results or developments will be realized or, even if substantially
realized, that they will have the expected effects on Trakopolis.
These forward-looking statements are made as of the date of this
press release. Except as required by applicable securities
legislation, the Company assumes no obligation to update publicly
or revise any forward-looking statements to reflect subsequent
information, events, or circumstances.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
FOR FURTHER INFORMATION, PLEASE CONTACTBrent
Moore, President and Chief Executive OfficerTrakopolis IoT
Corp.Telephone: (403) 450-7854Email: bmoore@trakopolis.com
Ron ShuttleworthOak Hill AdvisorsTelephone: (416) 487-9050Email:
ron@oakhilladvisors.ca
Trakopolis IoT (TSXV:TRAK)
Historical Stock Chart
From Jul 2024 to Aug 2024
Trakopolis IoT (TSXV:TRAK)
Historical Stock Chart
From Aug 2023 to Aug 2024