OTTAWA, ON--(Marketwired - August 29, 2016) - ProntoForms Corporation (TSX VENTURE: PFM) (the "Company"), the leading provider of mobile data collection and analytics platforms for enterprises, and small to medium sized businesses, today announced that it has entered into a financing agreement with BDC Capital Inc. ("BDCC"), a wholly-owned subsidiary of Business Development Bank of Canada, for a $4 million five-year secured term credit facility bearing interest at a fixed rate of 7% per year. The credit facility provides for the disbursement of funds in stages subject to the Company meeting certain conditions. The first disbursement of $2 million is expected to be received within this fiscal quarter.
In addition, pursuant to the financing agreement, BDCC is entitled to receive warrants entitling BDCC to acquire up to 4,350,000 common shares of the Company at a price per share of $0.45. The term of the warrants is 5 years and BDCC's ability to exercise the warrants shall be pro-rated according to the portion of the loan that has been advanced at any point in time. The warrants remain subject to TSX Venture Exchange acceptance.
The Company's subsidiaries will act as guarantors of the Company's obligations pursuant to the BDCC credit facility. The net proceeds from the credit facility are intended to be used for operations and working capital purposes and to repay an existing $1 million BDCC loan amount due in December 2017. Completion of the financing is subject to the negotiation and execution of additional definitive loan and security documents.
Further details regarding the financing will be available in the Company's public filings at www.sedar.com.
About ProntoForms Corporation
ProntoForms is a mobile workflow platform used by more than 3,500 businesses to collect and analyze field data with smartphones and tablets. Our product delivers an intuitive, secure and scalable solution for mobilizing business processes, with a low total cost of ownership. Our customers harness the solution to increase productivity and reduce cost, improve quality of service and mitigate risks.
ProntoForms is the winner of the 2015 Frost & Sullivan Competitive Strategy Innovation and Leadership Award for the Mobile Forms Industry.
The company trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.
Forward Looking Information
Certain information in this press release may constitute forward-looking information, including information regarding the credit facility and future disbursements thereunder. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. The Company's ability to draw down on the loan described above is subject to finalization of definitive documentation and other conditions, some of which may be outside of the Company's control. The Company assumes no obligation to update the forward-looking statements unless required by law. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which are available at www.sedar.com.