Company to benefit from C$5 Million loan from Investissement Québec
LAVAL, QC, Aug. 26 /CNW Telbec/ - 20-20 Technologies, (TSX: TWT), the
world leader in 3D interior design and furniture manufacturing software,
announced today that it has entered into a seven (7) year term loan agreement
with Investissement Québec of C$5.0 million. This loan will be provided by
Investissement Québec under the Renfort program and will be disbursed when
certain conditions are met. The funds will be used for general working capital
purposes and will include certain financial and other covenants. It will
further be secured by 20-20's assets and subordinated to the existing
revolving credit facility provided by 20-20's senior secured lenders.
"We are extremely pleased with Investissement Québec's decision to
support 20-20, as these funds will further solidify our financial position to
better cope with the severe economic crisis which has affected our industry.
This will also further improve our ability to capitalize upon selective
opportunities as our customer demand recovers," said Jean Mignault, CEO of
Concurrently, 20-20 has amended the Canadian banking arrangements with
its principal lenders to take this loan into account and address all
outstanding covenant issues.
The Company initially entered into a Credit Agreement with its lenders,
in part to fund its acquisition of Fusion. The amended Credit Agreement, now
for US$15.0 million and of which US$10.3 million is currently in use, combined
with the Investissement Québec loan will allow 20-20 to effectively manage its
short and longer term credit requirements.
"Our 2009 financial performance to date greatly facilitated negotiations
with our Canadian lenders. Our recent quarterly results have demonstrated our
ability to deliver improved results over our 2008 performance, despite
difficult market conditions. The cost cutting measures taken in 2008 and 2009
to address our financial performance have been conclusive to date," commented
Jean-François Grou, President and COO.
"The restructuring of our Canadian banking facility, together with the
Investissement Québec loan, will strengthen 20-20's balance sheet and
liquidity, given the long term nature of its debt. We remain adamantly focused
on continuing to improve our financial performance and are confident that all
the hard work of the past months will continue to bear fruit over the coming
years," added Mr. Grou.
About 20-20 Technologies Inc.
20-20 Technologies is the world's leading provider of computer-aided
design, business and manufacturing software solutions tailored for the
interior design and furniture industries. Dealers and retailers use its
desktop and Web-based products and solutions for the residential and
commercial markets. 20-20 offers a unique proprietary end-to-end solution,
integrating the entire breadth of functions in interior design. It provides a
bridge for data communication from the point-of-sale to manufacturing and
world-leading enterprise resource planning (ERP) systems, including
computer-aided engineering and plant floor automation software. Operating in
12 countries with more than 500 employees, 20-20 is a publicly traded company
(TWT) on the Toronto Stock Exchange (TSX). For more information, visit
Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of future operating
results and economic performance of the Company are assumptions regarding
projected revenues and expenses. These assumptions, although considered
reasonable by the Company at the time of preparation, may prove to be
incorrect. Readers are cautioned that actual future operating results and
economic performance of the Company are subject to a number of risks and
uncertainties, including general economic, market and business conditions and
could differ materially from what is currently expected.
For more exhaustive information on these risks and uncertainties you
should refer to our most recently filed Annual Information Form which is
available at www.sedar.com. Forward-looking information contained in this
report is based on management's current estimates, expectations and
projections, which Management believes are reasonable as of the current date.
The reader should not place undue importance on forward-looking information
and should not rely upon this information as of any other date. While the
Company may elect to, it is under no obligation and does not undertake to
update this information at any particular time, unless required by applicable
For further information:
For further information: Media Relations: Rick Leckner, MaisonBrison,