AirIQ Announces Loan Amendments
AirIQ Inc. (TSX: IQ), a leader in global wireless security, today announced that it has entered into an amendment to the Term Loan and Security Agreement previously entered into on April 5, 2006 with Quadrature Investments Inc. (“Quadrature”), providing for additional financing of up to $1,250,000. Quadrature is controlled by Robert Simmonds, a former member of the Board of Directors of the Company, and an officer, director and shareholder of Lenbrook Corp., which itself is a shareholder of and lender to the Company. The additional financing will be available for, and will mature in, ninety days, bears interest at the rate of 20% per annum, and interest only is payable on a monthly basis.
In addition, AirIQ also announced that it has entered into amending agreements in respect of its loan agreements originally entered into on June 20, 2006 with its unrelated senior lender. Pursuant to the amendments, the total usable cash available to the Company has increased by $250,000, while the maximum principal amount of the revolving operating loan was reduced from $5,000,000 to $3,500,000. The excess capacity has not been useable in recent months as it has not been marginable under the loan’s consolidated accounts receivable margin test.
AirIQ will use the additional financing available through these loan amendments for working capital purposes.
This news release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking statements. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Global Wireless Security, AirIQ is headquartered in Pickering, near Toronto, Canada, with offices in Lake Forest and San Diego, California, U.S.A. The Company operates as a wireless Internet applications service provider specializing in location-based services. AirIQ’s services are offered to four primary markets: Commercial Fleets; Consumer; Vehicle Finance; and, Marine Fleets. AirIQ gives vehicle and vessel owners the abilities to manage and protect their mobile assets. AirIQ’s services include: vehicle locating, boundary notification, automated inventory, maintenance reminders, security alerts, vehicle disabling, unauthorized movement alerts and many more features.
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