Gatekeeper Systems Secures $8.0 Million For Working Capital Via TD Bank
Gatekeeper Systems (TSXV: GSI) is now cashed up and ready to pursue a strategy of significant growth. The firm this morning indicated it has entered into credit facilities that will provide the company with the required working capital to fulfill recent contracts, such as a master services agreement with National Express, and push for growth.
“We are delighted that TD Bank, after completing their careful due diligence and reviewing our growth prospects, has equipped Gatekeeper with $8 million in aggregate working capital facilities on very favorable terms. This working capital financing is a cornerstone in our foundation for growth and we are solidly executing our growth agenda,” commented CEO Doug Dyment.
The first facility consists of a revolving credit facility for a total figure of $6.0 million from TD Bank. The facility bears interest at a rate of Canadian prime plus 0.85%, or the US rate of prime plus 0.75%, and is subject to fees related to the export guarantee program as well as to initial setup fees.
A letter of credit facility has also been entered into with TD Bank, for which the firm will provide letters of credit for up to $2.0 million to certain suppliers of the company. Fees for this facility amount to 0.65% of the amounts issued.
The securing of funding follows the company recently entering several large contracts, including a master services agreement with National Express, whom operates 20,000 school buses on a daily basis. Services provided to the firm include video, data, software and installation of tech, which is to be conducted on an ongoing basis. The arrangement follows a deal for 170 school buses within Alberta entered into in May, as well as a $5.1 million order from the Southeastern Pennsylvania Transit Authority.
Gatekeeper Systems last traded at $0.47 on the TSX Venture.
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