improved bank credit facilities Virtutone has received a vote of confidence from their bank. Credit line was increased to $2million based on 75% of A/R plus a new leasing facility AND the interest rate was reduced!
This is good news because the bank would have had access to the latest interim financial statements.
SHERWOOD PARK, ALBERTA--(Marketwire - June 27, 2012) - Virtutone Networks Inc., ("Virtutone" or the "Company") (VFX.V) announces today that it has secured additional financing under its bank facility agreement (the "Credit Facility"). The added financing will be used to assist in managing growth of the Company's wholesale division.
Under its new facility, the Company may borrow up to $2,000,000, provided the borrowings outstanding do not at any time exceed 75% of accounts receivable as defined in the Credit Facility. Virtutone also has available a revolving lease facility for up to $120,000. All borrowings bear interest at the bank's prime rate plus 1.7%, which has been reduced from prime plus 2.5% based on the bank's recently completed annual review of the Company's financial condition. All borrowings are secured by all of the assets of the Company.
"This new facility gives us needed flexibility as we continue to ramp up our wholesale business", said Colin Campbell, Virtutone's Chief Financial Officer.
About Virtutone Networks Inc.
Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The Company is a leading supplier of managed telecommunication services, including: VoIP, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company's website atwww.virtutone.com.