Toronto, ON / ACCESSWIRE / Mar 6 2014 / NTG Clarity Networks Inc. (TSX.V:NCI), a leader in the telecommunications OSS/BSS market, today announced that it has completed an agreement to establish a $3.5 million credit facility and $1.2 million bonding facility with RBC Royal Bank of Canada, Knowledge Based Industries Banking Group - Ontario.
"Today's announcement is a testament to RBC's strong focus on this innovative sector that continues to be a catalyst for growth in today's highly competitive and ever-changing global marketplace," said Eric Leblanc, vice president, knowledge based industries, RBC. "In fact, our team is committed to helping successful high-tech companies not only access the bank's services, but also access venture capital, enter into global markets and facilitate IPOs."
The new facility refinances an existing $1 million facility at a lower interest rate, and adds financing to support NTG's organic growth, new opportunities and ongoing projects.
The agreement includes:
-$2 million operating line available for general working capital purposes to fund continued growth;
-$1.5 million pre-shipping revolving facility to support pre-shipping costs associated with exports;
-$1.2 million letter of guarantee facility to support bid and performance and payment guarantees for export contracts.
"This new facility, in conjunction with the private placement convertible debenture of $872,000 completed in 2013 and the anticipated positive results from 2013, allows NTG to aggressively pursue new opportunities to achieve our growth plan" said Ashraf Zaghloul, NTG Clarity Chairman and CEO.
Facilities are supported by Export Development Canada (EDC) with an interest rate at prime plus 1.85% and are secured by a general security agreement over the Company's assets.
About NTG Clarity Networks Inc.
NTG Clarity Networks' vision is to be a global leader in providing networking solutions. Established in 1992, NTG Clarity is a leader in Canada in delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 200 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.
Royal Bank of Canada is Canada's largest bank, and one of the largest banks in the world, based on market capitalization. We are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. We employ approximately 79,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 42 other countries. For more information, please visit rbc.com.
RBC's Knowledge Based Industries Group "KBI" services the needs of Information Technology, Life Sciences, Media & Entertainment and Cleantech companies across Canada. The KBI Group was established in 1994, comprises specialized account managers and a dedicated risk adjudication group that understands the unique characteristics of KBI companies. For more information visit www.rbcroyalbank.com/technology.
Forward Looking Information
Certain statements in this release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.
These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward looking statements should circumstances or management's estimates or opinions change.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For Further Information:
Doren Quinton, President QIS Capital