Dynamic Technologies Group Inc - Class A ERILF

RE:RE:Increased LOC with CIBC

[Bobwins]

investors should almost always view increased bank line as a positive.  The banker gets to see the latest interim plus mgmt's forecasts before they approve increased credit.  Typically a fast growing company like EIL.v has to keep increasing their credit line along with total sales.  In exceptional cases, they might get sufficient deposits to help finance raw materials purchases and some labor.  If sales are growing fast, gross margins are crucial.  The tighter the margins, the more the increased sales need to be financed. 

So we're relatively lucky that EIL gets deposits and has decent margins so their credit needs are reasonable and haven't slowed the company down too much or caused it to have to get expensive credit on poor terms.