CALGARY, Alberta, Feb. 14, 2018 (GLOBE NEWSWIRE) — 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.
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.
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 CONTACT
Brent Moore, President and Chief Executive Officer
Trakopolis IoT Corp.
Telephone: (403) 450-7854
Oak Hill Advisors
Telephone: (416) 487-9050