Friday January 22, 12:36 pm Eastern Time
Company Press Release
TSI TelSys, Inc. Signs Letter of Intent for US$2 Million Credit Facility
COLUMBIA, Md.--(BUSINESS WIRE)--Jan. 22, 1999--Montreal Exchange ''TSI'' - TSI TelSys Corporation announced Friday that its operating subsidiary, TSI TelSys, Inc., has signed a letter of intent with The CIT Group/Credit Finance Inc. (''CIT''), a leading US lending institution, for a US$2 million revolving credit facility, with closing subject to completion of due diligence, Montreal Exchange and regulatory approvals, and completion of definitive agreements.
As a term of the proposed credit facility, CIT will be granted 80,000 share purchase warrants in TSI TelSys Corporation which will entitle CIT to purchase 80,000 common shares of the Company for a period of five years from the date of closing at a price equal to 5% above the current average market price of the Company's shares.
''As a result of our rapid growth in sales and because the lead time to produce and deliver a system is typically about six months, the Company requires additional working capital to finance work in progress, inventory and accounts receivable.'' said Paul Sevigny, the Company's Chief Financial Officer.
''In addition to the proposed CIT credit facility, the Company has entered into preliminary discussions with several parties to raise up to C$0.5 million of equity through a private placement to provide additional working capital. We look forward to advising the public of our progress.''
Headquartered in Columbia, TSI TelSys is a leading developer and manufacturer of high performance, multi-mission satellite data processing systems for ground station operations and satellite test and integration.
Except for historical information contained herein, the matters discussed in this press release contain forward looking statements that, due to uncertainties, may differ materially from actual results.
Further information about TSI TelSys, including copies of press releases, may be found through the TSI TelSys Internet Web site at tsi-telsys.com. TSI TelSys Corporation is listed on the Montreal Exchange, under the trading symbol ''TSI''.
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Contact:
TSI Telsys
Paul Sevigny, C.F.A./CFO, 410/872-3900
Fax: 410/872-3902
Email: info@tsi-telsys.com
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