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AcuityAds Closes $7.0 Million of New Debt Financing Led by Silicon Valley Bank
AcuityAds Closes $7.0 Million of New Debt Financing Led by Silicon Valley Bank Acu...
About this update from Illumin Holdings Inc.
[{"type":"text","content":"\n\n\n\nAcuityAds Closes $7.0 Million of New Debt Financing Led by Silicon Valley Bank\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nAcuityAds Closes $7.0 Million of New Debt Financing Led by Silicon Valley Bank\nCanada NewsWire\nTORONTO, Nov. 13, 2015\n\n\n\nTORONTO, Nov. 13, 2015 /CNW/ - AcuityAds Holdings Inc. (TSXV:AT) (\"AcuityAds\", or the \"Company\"), a leading provider of targeted digital media solutions, enabling advertisers to connect intelligently with their audiences across online display, video, social and mobile campaigns, is pleased to announce it has closed approximately CDN$7.0 million in new debt financing.\n\nThe Company has secured a US$3.5 million (approximately CDN$4.6 million) revolving line of credit (the \"Revolving Line of Credit\") from Silicon Valley Bank (\"SVB\") and has also secured a CDN$2.5 million Subordinated Term loan (the \"Loan\") from a group of private lenders (the \"Lenders\").\n\n\"With these new facilities we are now able to retire $4,000,000 of high interest debt with a significantly lower blended interest rate, allowing us to save over $200,000 per year in interest payments,\" said Dave Andrews, Chief Financial Officer of AcuityAds.  \n\n\"The intended use of the surplus proceeds will be to continue investing in our two strategic imperatives; growth in our SaaS-based self-service offering and further expansion of the US marketplace,\" said Tal Hayek, Chief Executive Officer of AcuityAds. \n\nThe SVB facility matures 364 days from closing and interest will accrue at a rate that is significantly lower than AcuityAds' existing debt. The maximum principal amount of the Revolving Line of Credit is tied to certain financial metrics of the Company from time to time, including its accounts receivable and SRED (Scientific Research and Experimental Development) receivables. \n\nThe subordinated Term Loan has been made pursuant to a credit agreement dated November 13, 2015, between the Company, its subsidiaries and the Lenders, who include individuals that are non-arm's length to the Cor...