AKR.v - Breaking out on the back of yesterday's news... 10.5 cents
2018-08-23 08:25 ET - News Release
Mr. Steve Levely reports
ACKROO ANNOUNCES EXPANSION OF CREDIT FACILITY
Ackroo Inc. has received approval from Royal Bank of Canada (RBC) in co-operation with Export Development Canada (EDC) to increase its current revolving line of credit from $200,000 to $350,000. The increase is being underwritten by EDC following a review of the company's current financial position and its planned expansion into the United States. The facility bears an interest rate of RBC's prime plus 2 per cent.
"Expansion of our credit facilities are important next steps for Ackroo and our shareholders," said Steve Levely, chief executive officer at Ackroo. "Now that the company is delivering positive EBITDA, we have many more options for accessing additional capital. Instead of relying on equity-based capital or other more expensive debt options to fund our growth, this facility offers non-dilutive capital with a favourable interest rate. We first looked to EDC to underwrite our increase in our line of credit because of our plans to further penetrate the U.S. market. Today only 8 per cent of our total revenues come from the U.S. and we expect this number to more than double in the next two years. EDC's mandate is to help Canadian companies expand into foreign markets and so we are very happy to receive their support. This is just the first small step in our relationship with EDC. As we begin this next chapter of Ackroo, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the company and our shareholders."
About Ackroo Inc.
Ackroo provides automotive, petroleum, hospitality and retail merchants of all sizes a robust, cloud-based multicurrency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Through a software-as-a-service-based business model Ackroo provides an in-store and on-line automated solution to help merchants process gift card, loyalty and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo's technology solution. |
