MONTREAL, Sept. 18, 2012 /CNW Telbec/ - Buzz Telecommunications Services (TSXV: BZZ) announced today that it has signed a loan agreement with the Royal Bank of Canada in the amount of $350 000 (the "Loan"). The Loan will be allocated towards working capital and marketing for the benefit of its subsidiaries. The Loan will be supported by a financial guarantee of 50% from Investissement Québec. The Loan is also secured by a first ranking security on the entire inventory of the Company as well as by a movable hypothec on present and future, corporeal and incorporeal, assets of the Company. Palos Capital Pool, L.P. also agreed to subordinate their loan to the Company in favour of the Loan. The first disbursement, in the amount of $250 000, was made upon execution of the Loan documents. The second disbursement of the Loan will be made six months from the first disbursement provided that the Company's annual sales in 2012 are $1 000 000 and that the Company has a positive EBITDA for a period of three months.
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About Buzz Telecommunications
Buzz is a telecom company licensed by the CRTC and provides a complete range of telecommunications services to Canadians in both residential & business markets. Buzz offers its branded 10-11-555 and the 10-11-289 Dial around Services. Buzz continues to develop long distance products for its clients in an effort to provide the long distance services as competitively priced as reasonably possible.
SOURCE: Buzz Telecommunications Services Inc.
For further information:
Please contact: Rafi Hazan, CEO & President, e-mail: [email protected], (514) 788-1499 x 202