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Lite Access Closes Expanded Credit Facility with Royal Bank of Canada
Lite Access Closes Expanded Credit Facility with Royal Bank of Canada Canada NewsW...
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[{"type":"text","content":"\n\n\n\nLite Access Closes Expanded Credit Facility with Royal Bank of Canada\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\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 6, 2020\n\n\n\nVANCOUVER, March 6, 2020 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the \"Company\") (TSX VENTURE: LTE) (OTC PINK: LTCCF) is pleased to announce it has closed an expanded credit facility with the Royal Bank of Canada (RBC), in cooperation with Export Development Canada (EDC).  \nFollowing a review of the Company's current financial position, in addition to the Company's  current  undrawn $500,000 revolving demand credit facility at RBC's prime plus 2.60%, RBC has approved an additional $1,650,000 revolving credit facility at RBC's prime plus 0.66%, with the first and second credit facilities not to exceed $1.9 million. 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. \n\"Expansion of our credit facility is an important next step for Lite Access and our shareholders,\" said Carlo Shimon, President & CEO of Lite Access.  \"The commitment by RBC reflects the recognition of the Lowestoft fibre-to-the premises (FTTP) installation contract valued at approximately $20 million with CityFibre (see press release dated October 23, 2019), and the risk profile of our business.  As we have secured an additional FTTP installation contract valued at approximately $13 million with CityFibre (see press release dated January 22, 2020), we expect continued confidence and support by our lenders in further credit facility increases for this contract and future contracts in additional cities, if performance expectations...