Opus Bank agreed to provide up to $20 million in debt financing to Sphere 3D, a containerization, virtualization and data management solutions provider and parent company of Overland Storage and Tandberg Data.

The company also terminated its short-term loan facility with FBC Holdings, by using $5 million in proceeds from the Opus financing and by increasing the existing convertible debenture with FBC by $5 million, which currently matures in 2018.

In connection with the Opus financing, the company issued to Opus a warrant for the purchase of up to 1,541,768 common shares of the company, no par value. The warrant will have an exercise price of $1.30 per share, a six-year term and are exercisable in whole or in part, at any time prior to expiration.

Eric Kelly, CEO of Sphere 3D, said, “Last year we executed a significant transformation and with this elimination of 100% of our short-term debt, we have positioned the company for growth in 2016. In preparing for this growth, we chose to partner with Opus Bank whose strength, leadership and experience in working with leading technology companies provide us with the necessary foundation to capitalize on our opportunities.”

Kevin McBride, senior managing director and head of the Technology Banking division at Opus Bank, said, “Sphere 3D has developed differentiated hybrid cloud solutions and partnered with leading global technology companies to help organizations modernize their IT infrastructure in a flexible and affordable way.”