Boardwalktech Software completed the restructuring of its debt agreement with existing lender and investor, SQN Venture Income Fund. This deal involves an extension of its existing debt structure at a better interest rate and a new $1 million loan.
Highlights of the transaction:
- An extension of the loan, with a new three-year maturity
- A reduction of the interest rate from 14.5% to 12.5%
- An initial six-month interest-only period, that can be extended for another six-months should Boardwalktech achieve certain performance milestones
- A new $1 million working capital loan by SQN, on terms similar to the new extension
- Conversion by SQN of $1,249,404 in debt to common shares of Boardwalktech equity by SQN (subject to TSXV and shareholder approval.
The amended loan agreement will mature in June, 2022, one year later than the original loan executed on June 15, 2018.
“Restructuring this loan with SQN is a big boost to Boardwalktech to help fuel our continued expansion and provide resources to accelerate continuing sales momentum. Further, the improved terms in the new loan and SQN’s desire to convert part of their debt into equity, reflects the type of ongoing support we are receiving from SQN and our other new and existing investors,” said Andrew T. Duncan, president and CEO of Boardwalktech Software.
Founded in 2004, Cupertino, CA-based Boardwalktech has developed a patented, robust, digital ledger technology that allows for multi-party collaboration and verification on a trusted, shared, secure, and private information cloud.