Edge Total Intelligence (edgeTI) amended its line of credit facility with Lotus Domaine III, an investment fund which is also a significant shareholder of the company.
“This amendment increases our line of credit and adds the company’s election to convert this debt into common shares, which when executed will improve our debt ratio and other related metrics as we look to reach cash-flow positive operations”, Jim Barrett, CEO of edgeTI, said. “The increase intends to better support existing and new investors and prepare edgeTI for growth as we help customers put more AI and automation technologies to work as adoption rates are expected to grow at more than 40% year-over-year as stated in our recent 2023 outlook release.”
The credit facility was entered into on June 1, 2022 and most recently amended on March 1, 2023. The credit facility bears interest at 8% compounded monthly with a maturity date of Jan. 20, 2026. Pursuant to the amendment, the credit facility was increased from $5.1 million to $5.95 million, with the purpose of funding investor marketing activities. The amendment also includes a new conversion option that allows the company to convert the debt owed under the credit facility to single voting shares of the company, in accordance with the rules and approval process of the TSX Venture Exchange (TSXV). The Amendment as it relates to the issuance of the convertible shares and the issuance of convertible shares is subject to TSXV approval.
