iLOOKABOUT closed a credit facility with Bank of Montreal’s Technology & Innovation Banking Group consisting of a $1.5 million term loan and a $1.5 million revolving credit facility, both of which mature in October 2022.
“The closing of these credit facilities is a huge testament to our company, its strategy and vision. It is also a vote of confidence in our management team and our ability to execute on this strategy,” said Gary Yeoman, chair and chief executive officer.
“As a company we are always looking to optimize our capital structure and reduce our cost of capital. We have chosen not to access the public capital markets at this time in order to avoid dilution to our shareholders.”
The cacilities are secured by assets of ILA and its subsidiaries, which primarily consists of intellectual property and accounts receivable. The proceeds of the facilities will be used for general corporate and working capital purposes.
The company has initially drawn $1.5 million of the term loan on closing and can continue to draw down additional funds as required on the operating facility.
With respect to the term loan, ILA will pay interest only for the first 12 months of the term, and thereafter will amortize in equal monthly instalments over two years. The company may, at its discretion, repay the balance of the term loan in whole or in part at any time after 24 months following the closing date without penalty or obligation for future interest payments otherwise payable had the term loan not been repaid.
Pricing is set at the prime rate plus 2.5% per annum for the operating facility, and at prime rate plus 4.0% per annum for the term loan.
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