MONTREAL, March 4 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components, has arranged a receivables financing facility in the amount of $2.5 million - which can be increased up to $5 million at Mitec's option and under certain terms and conditions - from a Canadian financial institution specializing in assisting small and medium sized businesses entering growth phases. The facility, which is subject to standard conditions, including final approval from the lender's credit committee, due diligence and completion of final documentation, will be used to support Mitec's working capital requirements and growth opportunities.
"Mitec is very pleased that it has been able to establish this facility", said Jeffrey Mandel, Mitec's Executive Chairman. "We believe that this facility will help us take advantage of various growth opportunities to which we have recently been exposed and also provide the necessary cash to ensure that Mitec is able to manage its working capital with respect to both upgrading and launching new product lines".
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in California and China. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Due to confidentiality provisions, Mitec is generally not able to disclose the names of its major customers or the financial data related to sales transactions. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
SOURCE Mitec Telecom Inc.
For further information: For further information: Mr. Jeffrey Mandel, Executive Chairman and Director, Investor and Corporate Relations, (514) 694-9000, firstname.lastname@example.org; Source: Mitec Telecom Inc.