Lite Access Technologies has closed an expanded credit facility with the Royal Bank of Canada, in cooperation with Export Development Canada (EDC).
RBC has approved an additional $1.65 million revolving credit facility at RBC’s prime plus 0.66%, with the first and second credit facilities not to exceed $1.9 million. The company current holds an undrawn $500,000 revolving demand credit facility at RBC’s prime plus 2.60%. The first facility is repayable on demand and the second facility is repayable on June 30, 2021.
As a condition to RBC granting the credit facility, the company entered into a corporate guarantee, a general security agreement granting a first priority general security interest in all personal property of the company, and a cash collateral agreement in the amount of $200,000.
No draws have been made to-date and Lite Access plans to draw on these funds, only if required, for growth and working capital needs.
“Expansion of our credit facility is an important next step for Lite Access and our shareholders,” said Carlo Shimon , president & CEO of Lite Access.
“Now, we have more options for accessing additional capital. As we begin the next chapter for Lite Access, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the Company and our valued shareholders.”
Lite Access Technologies develops innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.
