Business
Creative Realities Inc. Secures $2 Million Funding to Enhance and Expand Industry-Leading Automotive Software Support Platform
LOUISVILLE, Ky., Nov. 04, 2022 (GLOBE NEWSWIRE) -- Digital signage leader Creative Realities, Inc. (the “Company”) (NASDAQ: CREX, CREXW) announced today an
About this update from Creative Realities, Inc.
[{"type":"text","content":"LOUISVILLE, Ky., Nov. 04, 2022 (GLOBE NEWSWIRE) -- Digital signage leader Creative Realities, Inc. (the “Company”) (NASDAQ: CREX, CREXW) announced today an amendment to its Second Amended and Restated Loan and Security Agreement (the “Credit Agreement”) with their lender, Slipstream Communications, LLC (“Slipstream”). The amendment provides the Borrowers with a $2 million term loan, the net proceeds of which are being used by the Company to accelerate an active software development project with the potential to expand SaaS revenues associated with an existing customer by up to $5 million annually beginning in 2024. The term loan has an annual interest rate of 12.5% and matures on September 1, 2023. Commencing on February 1, 2023, the Borrowers will make monthly installment payments of approximately $270 thousand until the maturity date, consisting of principal and interest sufficient to fully amortize the term loan through the maturity date. The Company has secured this loan to fund an unplanned and extraordinary growth opportunity associated with its automotive and vehicular dealership software platform. The Company intends to utilize the proceeds to expand and enhance this existing platform in conjunction with a global expansion opportunity with one of the premier OEM dealership networks in the world. From the Internet to the actual dealership, the platform features fully integrated sales’ tools for automotive and vehicular dealers and car-buyers, and will be an integral part of the ordering, inventory and delivery process for dealers and their customers. “We believe that this investment will catapult the Company’s industry-leading platform to the global stage, with sales ultimately in a number of domestic and international markets,” stated Rick Mills, CEO of the Company. Mr. Mills added “This expansion is further testament to the multi-faceted suite of solutions offered by Creative Realities Inc., which already go well beyond digital signage infrastructure plays with its omni-channel marketing and ad-trafficking platforms.” The additional development of the platform is already underway and expanded commercialization is projected for the latter half of 2023 with a full implementation of the internationalized product beginning in 2024. The expanded commercialization is projected to generate incremental subscription (SaaS)-based...