Versatile Systems Inc.
TSX VENTURE : VV

Versatile Systems Inc.

March 22, 2006 04:00 ET

Versatile Obtains U.S. $2,749,263 Term Loan

VANCOUVER, CANADA--(CCNMatthews - March 22, 2006) - Versatile Systems Inc. (TSX VENTURE:VV), today announced that it has executed a commitment letter with a U.S. based financial institution for a Term Loan of U.S. $2,749,263 with a term of 18 months from the Closing date. Versatile will also continue to have up to U.S. $3,000,000 available on a Line of Credit based on a percentage of eligible receivables.

"The Term loan provides us with the stability necessary to run our business while the Line of Credit provides the capital to cover the peaks in our business cycle," said John Hardy, Chairman and CEO of Versatile. "This completes the first step in restructuring our current obligations in a manner that is not dilutive to our shareholders. As we have no requirement to repay any of the principal until the end of the 18 month term, this will also substantially reduce our working capital requirements over the next year."

The Term Loan will require monthly payments for interest at the New York prime rate of lending plus 1%. The principal will be due at the end of the 18 month term. Security will consist of a first 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 www.versatile.com.

Forward-Looking Statements

Certain of the statements contained in this news release are forward looking statements, including without limitation, statements relating to the proposed terms and closing of the term loan, and the continued availability of the line 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
    1 (800) 262-1633
    or
    Versatile Systems Inc.
    Fraser Atkinson
    CFO
    1 (800) 262-1633
    www.versatile.com