2009-11-10 13:40:07 -
Braintech Inc. (OTC BB: BRHI) has closed a $3 million loan facility with Silicon Valley Bank, Chief Executive Officer Rick Weidinger announced today. The loan facility consists of a $2.2 million term loan and an $800,000 working capital loan facility.
Braintech will draw down $1.55 million of the loan to lower its borrowing cost and fully pay its debt to its letter of credit providers and to provide working capital for the Company to operate and continue developing its world-class Vision Guided Robotics technology. The new loan facility will be interest only for 18 months from closing and will then convert to an 18-month principal-and-interest term loan with a final maturity 36 months from closing.
Five shareholders provided $1.55 million of back-stop
security for the new loan with the CEO Rick Weidinger being the largest provider. The Company will consider additional back-stop security for up to a total of $2.2 million by year-end 2009. Additionally, Braintech founder, director and shareholder Owen Jones converted his letter of credit debt to equity and agreed to invest additional funds into the Company by year-end 2009.
“We’re very pleased to secure the financing and investment that will allow Braintech to grow and continue to develop its world-class technology,” Weidinger said. “We have industry-leading software with a focus on government and defense applications and we are continuing to work with industrial companies as the economy begins to recover and capital budgets reappear. Looking on the horizon, we have some exciting products scheduled for release during the First Quarter of 2010.
“The Company has a very supportive group of shareholders, directors and employees who strongly believe in the future of our business.”
About Braintech Inc.:
Braintech's (OTC BB: BRHI) software products offer robust, scalable and transferable Vision Guided Robotic (VGR) solutions used for industrial, and government & defense service applications. The company's software is being utilized every day with over 170 installations worldwide.
Braintech’s customers include Toyota, Johnson & Johnson, Boeing, Harley-Davidson, Chrysler, Delphi, Honda, GM, Ford, Nissan, BAE Systems, Makino and ABB. The company has offices in McLean, Virginia, Pontiac, Michigan, and Vancouver, British Columbia, Canada.
For more information, visit www.braintech.com :
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. .
© Braintech 2009. All Rights Reserved.
FORWARD-LOOKING STATEMENTS
Statements in this document that are not purely historical are forward-looking statements and reflect the current views of management with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that the Company’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as difficulties in obtaining further financing; difficulties in increasing our revenues; difficulties in developing and releasing new products; difficulties in hiring qualified employees; difficulties in building the government and defense business; competition from other suppliers of similar products; pricing that may not be acceptable to potential markets; and many other known and unknown factors. Readers should also refer to the risk disclosures outlined in the Company’s 10-K and 10-Q Forms filed from time to time with the SEC.
Braintech Inc.Tim TuttlePublic/Media Relations765-246-6335317-432-1169
timetuttle@braintech.com : mailto:timetuttle@braintech.com
