CALGARY, April 26, 2012 /CNW/ - Inventronics Limited ("Inventronics" or the "Corporation") (IVX:TSX Venture), a designer and manufacturer of custom enclosures for the telecommunications, electric transmission, cable television and other industries in North America, is pleased to announce that it has accepted a commitment from the Business Development Bank of Canada (the "BDC") to provide a $2,400,000 long-term loan to the Company.
The loan will be used to fully repay and discharge the Corporation's current term loan in the amount of $2,279,000 with BMO Bank of Montreal which matured on March 31, 2012. The BDC loan will have a term of 30 years and the interest rate will be fixed for five years at a rate of 7.1% at which time the interest rate will be subject to adjustment in accordance with the loan documents.
The BDC loan will be secured by a mortgage on the Corporation's production facility in Brandon, Manitoba and a security interest in all of the Corporation's present and after acquired personal property. In addition, each of Dan Stearne, Garth Wilson, Dan O'Greysik and Tracy Dobson will provide personal guarantees of the Corporation's obligations pursuant to the BDC Loan. Each of Messrs. Stearne, Wilson and O'Greysik and Ms. Dobson are directors and members of management of the Corporation. In addition, Messrs. Stearne, Wilson and O'Greysik and Ms. Dobson collectively hold all of the issued and outstanding shares of 1437891 Alberta Ltd., a corporation which presently holds 3,020,000 common shares of the Corporation representing approximately 69% of the issued and outstanding shares of the Corporation.
Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electric utility, cable television, electronics and computer services industries in North America. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba.
Shares of Inventronics trade on the TSX Venture Exchange under the symbol "IVX." For more information about the Corporation, its products and its services, go to www.inventronics.com.
This news release may contain forward looking information that represents the Corporation's internal projections, expectations, estimates or beliefs concerning, among other things, the terms of the BDC loan and the use of proceeds of the BDC loan. These statements relate to future events or future performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the ability and timing to complete and execute all necessary documentation to proceed with the BDC loan, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to satisfying all of the conditions of the BDC loan, the willingness of BDC to proceed with the loan as committed and the willingness of members of management to sign personal guarantees as contemplated, and other factors that may cause results to differ materially from any projections or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. Except as otherwise required under applicable securities laws, the Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Dan Stearne, President and CEO email@example.com
W. Garth Wilson, CFO (204) 728-2001 firstname.lastname@example.org