TORONTO, May 30, 2014 /CNW/ - BSM Technologies Inc. ("BSM" or the "Company") (TSX-V: GPS), a leading provider of remote monitoring, fleet management, fleet diagnostics and automated vehicle security systems, today announced that its wholly-owned subsidiary, BSM Technologies U.S. Holdings, Inc. ("BSM U.S."), has closed its previously announced acquisition of 100% of the membership interests of privately held Lat-Lon, L.L.C. ("Lat-Lon"), a Colorado limited liability company (the "Lat-Lon Acquisition"), upon the terms previously announced in the Company's press release dated May 15, 2014.
"By adding Lat-Lon's impressive customer base, rail car and locomotive product portfolio, and team, we have quickly expanded beyond our existing high-rail solution and positioned BSM as a leader in the important rail vertical," said Aly Rahemtulla, President & CEO of BSM. "We will continue expanding in this key vertical, with many exciting opportunities in front of us."
BSM also announced today that its credit agreement dated as of June 28, 2013 with a Canadian chartered bank has been amended to temporarily increase the existing revolving credit facility from $3,000,000 to $11,400,000 (the "Credit Increase"). The Credit Increase was utilized in connection with the closing of the Lat-Lon Acquisition. BSM currently expects to amend and restate its existing credit agreement (the "Amended and Restated Credit Agreement"), whereby BSM U.S. will become an additional borrower and a new five (5) year term credit facility for USD$7,000,000 will be added. The Amended and Restated Credit Facility is currently expected to close on or prior to June 30, 2014, is subject to customary closing conditions and will be used to reduce the balance on the revolving credit facility.
About BSM Technologies Inc. (bsmwireless.com)
BSM Technologies Inc., through its subsidiaries, is a leading provider of remote monitoring, fleet tracking and fleet maintenance and a business intelligence engine providing real time web‐based tracking of mobile and fixed assets. BSM provides solutions for commercial, government, and law enforcement organizations who manage and operate diverse assets and large fleets, and who seek to enhance customer service, improve the safety of their drivers and vehicles, and lower business costs.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities laws. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or be achieved and any other similar expressions. These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information. Some of these risks, uncertainties and other factors are described under the heading "Risk Factors" in the Company's annual information form available at www.sedar.com. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, BSM does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.
SOURCE: BSM Technologies Inc.
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BSM Technologies Inc.
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