Business
Gatekeeper Enters into $3M Revolving Credit Facility with TD Bank and Provides Update on Growth
(via TheNewswire) Abbotsford, BC - TheNewswire - July 23, 2020 - Gat...
About this update from Gatekeeper Systems, Inc.
[{"type":"text","content":"Gatekeeper Enters into $3M Revolving Credit Facility with TD Bank and Provides Update on Growth(via TheNewswire)\n \n \nAbbotsford, BC - TheNewswire - July 23, 2020 - Gatekeeper Systems Inc. ('Gatekeeper' or the 'Company') (TSXV:GSI) (OTC:GKPRF) (FSE:1GK) a leading provider of intelligent video solutions for public transport and smart cities, is pleased to announce it has entered into a revolving credit facility (the \"Credit Facility\") with Toronto Dominion Bank pursuant to which Gatekeeper will be entitled to borrow up to CAD $3 million to support the Company's growth.\n\n\n \nAdvances made under the Credit Facility will bear interest at a rate of prime plus 0.85% per annum and United States Base Rate (USBR) loans at a rate of prime plus 0.75%. The Credit Facility is intended to be used for general working capital purposes. \n\n\n \nThe Company recently filed its financial results for the nine-month period ending May 31, 2020, reporting nine-month revenues of $12.6 million, no long-term debt, and working capital of $7.7 million. Since May 31, 2020, the Company's business has continued to grow, and outstanding receivables now stand at approximately $6.5 million. The Company expects this growth to continue and will utilize the Credit Facility as required to fund the continued growth. \n\n\n \nDoug Dyment, President and CEO commented, \"Our current accounts receivable balance is the highest in the Company's history and is already approaching the level of what was full-year revenue just a couple of years ago. We accomplished this growth without any dilutive financings. I am delighted that a top tier bank, after completing their careful due diligence, has provided us with a credit facility on very favorable terms during this period of heightened global economic uncertainty. It speaks to the solid foundation and promising growth outlook of our company.\"\n\n\n \nThe Credit Facility is secured by a General Security Agreement (GSA) for Gatekeeper Systems Inc., representing a first charge on the Company's present and after acquired personal property, and a Uniform Commercial Code Security Agreement (\"UCC\") for Gatekeeper Systems USA Inc., among other customary guarantees, and is repayable upon demand. The initial drawdown under the Credit Facility is subject to satisfaction or waiver of certain conditions precedent customary for a f...