- Structural Monitoring Systems (SMN) Canadian based subsidiary, Anodyne Electronics Manufacturing (AEM) gets financing from Royal Bank of Canada
- The agreed facilities include a CA$3.75 million (A$4.01 million) operating line of credit and a CA$1.25 million (AU$1.34 million) cashflow term loan
- The credit will be used for working capital and refinancing the acquisition of Eagle Copters’ audio products business
- These facilities will replace the companies existing facilities with HSBC, settlement is expected in early February, 2023
- SMN shares were up 11.1 per cent, trading at 40 cents at 12:34pm AEDT
Structural Monitoring Systems (SMN) Canadian based subsidiary, Anodyne Electronics Manufacturing Corp (AEM), has secured new banking and credit facilities with the Royal Bank of Canada.
The agreed facilities include a CA$3.75 million (A$4.01 million) operating line of credit and a CA$1.25 million (A$1.34 million) cashflow term loan.
RBC has also agreed to provide foreign exchange credit, business Visa and revolving lease line facilities.
The company said the purpose of the credit agreement is to finance working capital secured on inventory and accounts receivable.
It will also assist refinancing of the acquisition of Eagle Copters’ audio products business division for C$4.3 million (A$4.6 million) in September 2021.
These facilities will replace the companies existing facilities with HSBC, settlement is expected in early February, 2023.
“The move to RBC will result in the repayment of US$800,000 currently held as collateral security by HSBC and will directly provide immediate additional working capital to the company as it explores further growth avenues,” said SMN’s CFO, Gary Elwell.
“In addition, AEM will not be required to repay CA$1million which was required during 2023 under the terms of the HSBC facility.
“This uplift in available working capital of CA$2 million will greatly assist the financing capability of the group without resorting to equity markets at a time of market volatility and uncertainty, and preserving shareholder value, as it progresses the commercialisation strategy of its CVMTM technology during 2023 and beyond.”
SMN shares were up 11.1 per cent, trading at 40 cents at 12:34pm AEDT.