Mr. Gary Yeoman reports
ILA CLOSES $3 MILLION CREDIT FACILITY WITH BMO BANK OF MONTREAL
iLookabout Corp. has closed its credit facility with Bank of Montreal's Technology & Innovation Banking Group. The facility consists of a $1.5-million term loan and a $1.5-million revolving credit facility, both of which mature in October, 2022.
"The closing of these credit facilities is a huge testament to our company, its strategy and vision. It is also a vote of confidence in our management team and our ability to execute on this strategy," said Gary Yeoman, chair and chief executive officer. "As a company we are always looking to optimize our capital structure and reduce our cost of capital. We have chosen not to access the public capital markets at this time in order to avoid dilution to our shareholders."
The facilities are secured by assets of iLookabout and its subsidiaries, which primarily consists of intellectual property and accounts receivable. The proceeds of the facilities will be used for general corporate and working capital purposes.
Pursuant to the agreed upon conditions of the facilities, the company has initially drawn $1.5-million of the term loan on closing and can continue to draw down additional finances as required on the operating facility.
With respect to the term loan, iLookabout shall pay interest only for the first 12 months of the term and thereafter shall amortize in equal monthly instalments over two years. The company may, at its discretion, repay the balance of the term loan in whole or in part at any time after 24 months following the closing date without penalty or obligation for future interest payments otherwise payable had the term loan not been repaid.
Pricing is set at the prime rate plus 2.5 per cent per annum for the operating facility and at prime rate plus 4 per cent per annum for the term loan.
The facilities contain customary financial and restrictive covenants.
About iLookabout Corp.
iLookabout is a real estate valuation platform with technologies that leverage the power of data designed to address today's dynamic real estate valuation market. The company's proprietary innovative platform is driving the next generation of real property valuation solutions. Accurate data and property valuations form the basis for the company's clients to value assets, finance loans, securitize portfolios, and to analyze and update property tax assessments.
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