CALGARY, Dec. 3 /CNW/ - CriticalControl Solutions Corp., (TSX-V:CCZ)
today announced that the Corporation has signed a commitment letter with
Comerica Bank for up to a $3.5 million revolving line of credit to support the
Company's working capital requirements. The commitment also includes a
$1.5 million term loan facility that the Company will use to refinance its
existing debt. Funding of the facilities is subject to certain conditions
including the finalization and registration of security documentation.
"These new facilities will significantly reduce our cost of borrowing and
increase our working capital," said Alykhan Mamdani, President and CEO of
CriticalControl. "Together with our current strong operational cash flow, this
will provide us with the financial flexibility to execute our growth
The revolving line of credit bears an interest rate of bank prime plus
0.50%. The term loan facility bears an interest rate of bank prime plus 1.00%.
CriticalControl's current outstanding debenture to Wellington Financial
in the amount of $2.75 million matures on January 3, 2008. Management
anticipates that the new facilities will fund prior to this maturity date and
retire the debenture in its entirety.
We seek safe harbour.
CriticalControl enables its clients to increase operational performance
through the better control of critical business information. Through the
balance of practicality, innovation and technology, we empower our clients
with everything from strategies and tools, to outsourced solutions to manage
information, wherever and in whatever form that information exists. For more
information please visit www.criticalcontrol.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: Alykhan Mamdani, President & CEO, Tel (403)
705-7500; or David Feick, The Equicom Group, Tel (403) 538-4787, Fax (403)