October 07, 2009 09:05 ET

Northstar Electronics, Inc. (NEIK) Secures $800,000 Line of Credit in Support of Manufacturing Contracts

VANCOUVER, BC--(Marketwire - October 7, 2009) - Northstar Electronics, Inc. (OTCBB: NEIK) announced today that its wholly-owned subsidiary, Northstar Network Ltd., has secured a US$800,000 Line of Credit (LOC) from Maple Trade Finance, a subsidiary of the international Maple Finance Group. The LOC is for use in supporting Northstar's growing defense business which includes previously announced contracts with Lockheed Martin Aeronautics and L-3 Communications.

"This financing agreement facilitates more rapid implementation of parts production on the P-3 maritime surveillance aircraft contract we have with Lockheed Martin," stated Terry McLeod, CEO, Northstar Network Ltd. "It is expected our revenue stream will grow significantly as a result of the additional production capability." He added that cost efficiencies, coupled with increased revenues from escalation of contact work, are expected to lead the company to profitability in the short term.

Dr. Wilson Russell, CEO of Northstar Electronics, Inc., said: "This is a very important development for the company. It enables us to compete for new and larger defense contracts from Lockheed Martin and other prime contractors. In this economic climate of tight credit, the ability to secure this size of LOC demonstrates a high level of confidence on the part of our financial partner in our current contracts and our future opportunities in the defense industry." Dr. Russell further stated that this line of credit can increase upwardly, dependent on the size of a pending contract account receivables.

For further information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, yes@yesinternational.com, #800-631-8127 and/or Ms. Beverly Jedynak, Media Relations, Martin Janis & Co, Inc., b.jedynak-janispr@att.net, (312) 943-1000.

About Northstar Electronics, Inc.

Northstar Electronics, through its subsidiaries, Northstar Technical Inc. and Northstar Network Ltd. provides electronics products to the marine industry and provides engineering, prototyping and production services to the defense and Homeland Security industries. www.northstarelectronics.com

About Maple Financial Group: Maple Financial, founded in 1986, has over over 260 employees, assets of $63 billion and offices in Toronto, Frankfurt, Jersey City, London and Milan. Maple Financial's subsidiaries include a German bank with Canada and Italy branches and Maple Trade Finance Inc. with offices in Toronto, Halifax, Quebec and Vancouver, and broker-dealers in Canada, U.S. and U.K.

Safe Harbor: Included in this release are forward-looking statements within Section 27A of Securities Act of 1993, as amended, and Section 21E of Securities Exchange Act 1934, and is subject to safe harbor created by those sections. Although Company believes such expectations reflected in forward-looking statements are reasonable, it can give no assurance that such expectations reflected in forward-looking statements will prove correct; Company's results could differ materially from those anticipated.

Contact Information

  • Contact:
    Rich Kaiser