Trakopolis Secures USD $3.5 Million Credit Facility from Silicon Valley Bank
CALGARY, Alberta, Feb. 14, 2018 — Trakopolis IoT Corp. (TSXV:TRAK) (“Trakopolis” or the “Company”) is pleased to announce that it has entered into a new USD $3.5 Million secured credit facility with California based Silicon Valley Bank, the bank of the world’s most innovative companies and their investors. The credit facility consists of a 36-month term loan of USD $1.5 Million (the “Term Loan”) and an accounts receivable line of credit of up to USD $2 Million (the “Revolving Line”). The Term Loan bears interest at a rate of US prime plus 1.5% and the Revolving Line bears interest at a rate ranging from US prime plus 1.75% to prime plus 2.25% based on certain operating metrics. Proceeds from the Term Loan will be used to prepay and retire the Company’s outstanding indebtedness with B.E.S.T. Funds. The Revolving Line will be used to fund the Company’s growth strategy.
“Reducing our cost of borrowing to under 7% based on today’s rates, with no dilutive instruments attached, and adding a revolving line of credit provides the Company with a debt facility that is aligned with our focus on recurring revenue,” said Trakopolis’ CFO, Richard Clarke. “We welcome the financial backing of Silicon Valley Bank as we continue to grow our
customer and subscriber base.”
“Trakopolis has created an innovative platform and achieved notable growth,” said Ryan Kirschling, Director for Silicon Valley Bank. “We are pleased to support Trakopolis in their global efforts to advance the industrial internet of things.”
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank has helped innovative companies and their investors move bold ideas forward, fast. Silicon Valley Bank provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, Silicon Valley Bank helps address the unique needs of innovators. Learn more at svb.com.
Trakopolis is a Software-as-a-Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers. The Company’s asset management platform works across a variety of networks and devices. Trakopolis has a diversified revenue stream from many verticals including oil and gas, forestry, transportation, construction, rentals, urban services, mining, government and others.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION, PLEASE CONTACT
Brent Moore, President and Chief Executive Officer
Trakopolis IoT Corp.
Telephone: (403) 450-7854