TORONTO, Dec. 24 /CNW/ - LOREX Technology Inc. (the "Company") (NEX: LOX.H) is pleased to announce it has closed on a new senior debt credit facility (the "Facility") consisting of revolving loans aggregating U.S. $10 million.
The Facility with PNC provides the Company and certain of its U.S. and Canadian subsidiaries (collectively, the "Borrowers") with a revolving U.S. $10 million credit facility. The Facility is secured by all of the assets of the Borrowers. The Facility is for a term of three (3) years and provides for the borrowing of funds in either U.S. or Canadian funds. Loans are provided by PNC Bank, National Association and PNC Bank Canada.
The Facility, which closed on December 22, 2009, replaces the Company's previous credit facility with Wells Fargo. Pursuant to the Wells Fargo default notice, as reported in the Company's press release dated September 22, 2009, the Company was obligated to secure new financing by January 14, 2010. By closing the Facility within 91 days, the Company was able to meet its requirements under the default notice and avoided the payment of additional penalties.
Reuben Klein, the Chief Executive Officer of the Company, stated "We are excited to have PNC as our lender and the speed at which this facility closed is an indicator of the strength and position of the Company within its field. With the new credit facility and the recent financings that the Company has completed, the Company now has the necessary working capital and financial stability to pursue its business objectives."
About LOREX Technology Inc.:
LOREX provides businesses and consumers with leading edge video surveillance security solutions and sells its products under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in over 9,000 retail locations across North America and the U.K. and has an established market presence online selling through major e-tailers and through its in-house webstore. The Digimerge division distributes its products through major distributors in both North America and Europe. Both brands concentrate on the sale of wired, wireless and IP security surveillance equipment including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., Digimerge Technologies Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.
Certain information included in this news release contains statements that are forward-looking, such as the statements about financing alternatives. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Full financial statements along with Management's Discussion and Analysis can be obtained from SEDAR at www.sedar.com
SOURCE LOREX Technology Inc.
For further information: For further information: Jordan Schwartz, Chief Financial Officer, LOREX Technology Inc., Phone: (905) 946-8589 ext 168, www.lorextechnology.com