Ackroo received approval from the Royal Bank of Canada, in cooperation with Export Development Canada, to increase its current revolving line of credit from $200,000 to $350,000.
Export Development Canada is underwriting the increase following a review of the company’s current financial position and its planned expansion into the U.S. The facility will bear an interest rate of RBC’s prime plus 2%.
“Expansion of our credit facilities are important next steps for Ackroo and our shareholders,” said Steve Levely, CEO at Ackroo. “Instead of relying on equity-based capital or other more expensive debt options to fund our growth, this facility offers non-dilutive capital with a favorable interest rate. We first looked to EDC to underwrite our increase in our line of credit because of our plans to further penetrate the US market. Today only 8% of our total revenues come from the US and we expect this number to more than double in the next 2 years. EDC’s mandate is to help Canadian companies expand into foreign markets and so we are very happy to receive their support. As we begin this next chapter of Ackroo, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the company and our shareholders.”
Headquartered in Ottawa, Canada, Ackroo provides automotive, petroleum, hospitality and retail merchants a cloud-based multi-currency marketing platform to help attract, engage and grow customers while increasing revenues and margins. It specifically provides an in-store and online automated solution to help merchants process gift card, loyalty and promotional transactions at the point of sale, along with administrative and marketing data.
