Versatile Systems Inc.

Versatile Systems Inc.

April 07, 2006 04:00 ET

Versatile Completes U.S. $2,749,263 Term Loan Financing

VANCOUVER, CANADA--(CCNMatthews - April 7, 2006) -

Versatile also secures lines of credit for up to U.S. $8,000,000

Versatile Systems Inc. (TSX VENTURE:VV), today announced that it has closed a financing with a U.S. based financial institution for a Term Loan of U.S. $2,749,263 that is due on October 6, 2007. Versatile will also have up to U.S. $3,000,000 available on a Line of Credit, based on a percentage of eligible receivables, from the financial institution. In addition, Versatile has obtained a Vendor line of credit for up to U.S. $5,000,000 supported by accounts receivable.

"We now have sufficient financial capacity to support our working capital requirements for the next year," said John Hardy, Chairman and CEO of Versatile. "The Term Loan eliminates an obligation that was due in the current year in a manner that is not dilutive to our shareholders and since we have no requirement to repay any of the principal until the end of the 18 month term, this will substantially improve our working capital position for the next fiscal year."

The Term Loan will require monthly payments for interest at the prime rate of lending plus 1%. The principal will be due on October 5, 2007 but Versatile may prepay any portion of the Term Loan without penalty. The U.S. $3,000,000 Line of Credit bears interest at the prime rate of lending. Security for the Term Loan and the Line of Credit consists of a first charge on the accounts receivable and other assets of certain U.S. subsidiaries.

The Vendor line of credit for up to U.S. $5,000,000 is non-interest bearing for amounts that are due in less than 45 days and has a second charge on the accounts receivable and other assets of certain U.S. subsidiaries.

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. By using Versatile's technology, companies in the consumer packaged goods, and transportation industries have gained the benefits of supply chain visibility, shortened fulfillment cycles and improved customer satisfaction. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computing environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information go to

Forward-Looking Statements

Certain of the statements contained in this news release are forward looking statements, including without limitation, statements relating to the term loan, and the continued availability of the lines of credit. Such forward looking statements involve unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Versatile to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward looking statements. Consequently readers should not place any undue reliance on such forward-looking statements. In addition, these forward looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

(C) 2006 Versatile Systems Inc. All rights reserved.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • Versatile Systems Inc.
    John Hardy
    Chairman and CEO
    Versatile Systems Inc.
    Fraser Atkinson