Financing from leading Canadian commercial lender closed in conjunction with the acquisition of Savision
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OTTAWA, Nov. 2, 2018 /CNW/ - Martello Technologies Group Inc. (TSXV: MTLO), ("Martello" or the "Company"), a leading provider of network performance management solutions for real-time communications announced today that it has closed a financing with Royal Bank of Canada (RBC) for new loan facilities through its subsidiary Martello Technologies Corporation (the "Loan"). The financing includes a term loan of $3 million, in conjunction with the acquisition of Savision B.V.
This new financing is comprised of a term loan, a revolving facility and other ancillary facilities. The term loan of $3 million bears an interest rate of 5.40% per annum and is repayable over a term of 36 months. The revolving facility, in the amount of up to $1 million, bears a variable interest rate based on the RBC prime rate and is repayable on demand.
The facilities are secured by a general security agreement on the property of Martello Technologies Corporation, a subsidiary of the Company, as well as secured guarantees from five other subsidiaries of the Company and the Company itself.
"This loan facility from Royal Bank of Canada will solidify our foundation for growth and help fuel Martello's 'build and buy' strategy, which includes the acquisition of Savision", said John Proctor, president and CEO of Martello. "We appreciate the confidence placed in us by one of Canada's largest commercial lending institutions".
Recent acquisition activities for Martello include the acquisition of Savision B.V. announced in October 2018, after having acquired Elfiq Networks in December 2017 and Netvitesse in 2014. The Company's solutions have also been recognized by the industry. In September, Martello received a Frost & Sullivan Leadership Award for NPM (Network Performance Management) and ranked as Ottawa's Fastest Growing Company, at No. 28 on the Growth 500 list of Canada's Fastest Growing Companies. The Company recently went public with a TSXV listing, following the closure of an oversubscribed $7.5 million private placement.
About Martello Technologies Group
Martello Technologies Group Inc. (TSXV: MTLO) delivers confidence in network performance. Our solutions manage and optimize the performance of real-time services on cloud and enterprise networks and include network performance management software and SD-WAN technology. Over the top (OTT) service providers and enterprises around the world rely on Martello's technology to deliver better service quality and a reliable user experience. Designed for real-time communications such as voice and video, Martello's solutions detect, identify and address network performance problems BEFORE service quality is impacted. Martello Technologies Group is a public company headquartered in Ottawa, Canada with offices in Montreal, Canada and Paris, France. Learn more at http://www.martellotech.com
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Corporation's control. These factors include: general market and industry conditions, risks related to continuous operations and to commercialization of new technologies and other risks disclosed in the Corporation's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Corporation's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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SOURCE Martello Technologies Group