Virtutone Networks Inc.
TSX VENTURE : VFX

Virtutone Networks Inc.

June 27, 2012 13:25 ET

Virtutone Announces Financing Update

SHERWOOD PARK, ALBERTA--(Marketwire - June 27, 2012) - Virtutone Networks Inc., ("Virtutone" or the "Company") (TSX VENTURE:VFX) announces today that it has secured additional financing under its bank facility agreement (the "Credit Facility"). The added financing will be used to assist in managing growth of the Company's wholesale division.

Under its new facility, the Company may borrow up to $2,000,000, provided the borrowings outstanding do not at any time exceed 75% of accounts receivable as defined in the Credit Facility. Virtutone also has available a revolving lease facility for up to $120,000. All borrowings bear interest at the bank's prime rate plus 1.7%, which has been reduced from prime plus 2.5% based on the bank's recently completed annual review of the Company's financial condition. All borrowings are secured by all of the assets of the Company.

"This new facility gives us needed flexibility as we continue to ramp up our wholesale business", said Colin Campbell, Virtutone's Chief Financial Officer.

About Virtutone Networks Inc.

Virtutone Networks Inc. is a technology company based in Sherwood Park and is listed on the TSX Venture Exchange in Canada. The Company is a leading supplier of managed telecommunication services, including: VoIP, Fax over IP services, Hosted PBX services, DSL & T1 data circuits, wireless solutions for mobile work forces and SCADA networks, and network management and IT-related products. Additional information can be found on the company's website at www.virtutone.com.

This document may contain certain forward-looking information or statements ("Forward-looking statements") as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: changes in the global economy; a failure to negotiate new customer contracts; increasing infrastructure needs and costs; termination or non-renewal of material contracts; and changes in demand for telephony services. Forward-looking statements are any statements other than statements of historical fact. The use of any "plan" "expect " "project" "believe" "should" "anticipate" or other similar words or statements that certain events "may" or "will" occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: Virtutone's wholesale services division and the benefits therefrom; and expected future growth. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone's new infrastructure; infrastructure requirements; and the market for telephony services. Although management believes the expectations and assumptions reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Virtutone Networks Inc.
    Colin Campbell
    Chief Financial Officer
    780-702-5777 ext. 108