Lite Access Closes Expanded Credit Facility with Royal Bank of Canada

VANCOUVER, March 6, 2020 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE) (OTC PINK: LTCCF) is pleased to announce it has closed an expanded credit facility with the Royal Bank of Canada (RBC), in cooperation with Export Development Canada (EDC). 

Following a review of the Company's current financial position, in addition to the Company's  current  undrawn $500,000 revolving demand credit facility at RBC's prime plus 2.60%, RBC has approved an additional $1,650,000 revolving credit facility at RBC's prime plus 0.66%, with the first and second credit facilities not to exceed $1.9 million. The first facility is repayable on demand and the second facility is repayable on June 30, 2021. As a condition to RBC granting the credit facility, the Company entered into a corporate guarantee, a general security agreement granting a first priority general security interest in all personal property of the Company, and  a cash collateral agreement in the amount of $200,000.  No draws have been made to-date and Lite Access plans to draw on these funds, only if required, for growth and working capital needs.

"Expansion of our credit facility is an important next step for Lite Access and our shareholders," said Carlo Shimon, President & CEO of Lite Access.  "The commitment by RBC reflects the recognition of the Lowestoft fibre-to-the premises (FTTP) installation contract valued at approximately $20 million with CityFibre (see press release dated October 23, 2019), and the risk profile of our business.  As we have secured an additional FTTP installation contract valued at approximately $13 million with CityFibre (see press release dated January 22, 2020), we expect continued confidence and support by our lenders in further credit facility increases for this contract and future contracts in additional cities, if performance expectations are met. Instead of relying on equity-based capital or other more expensive debt options to fund our growth, this facility offers non-dilutive capital with a favourable interest rate and provides us with the operating flexibility to support our growth as we execute the CityFibre contracts and generate positive cash flow as planned." 

Mr. Shimoon explained, "Now, we have more options for accessing additional capital.  As we begin the next chapter for Lite Access, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the Company and our valued shareholders."

About Lite Access

Lite Access Technologies Inc. is a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.

As part of its suite of services Lite Access provides clients with integrated solutions or select components for the design and implementation of fibre optic networks.  Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout the United Kingdom, the USA and Canada as well as global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.

Lite Access' installation technology and proprietary products extend a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, businesses, government and educational institutions, and emergency response facilities. Lite Access remains flexible and innovative in its commitment to provide global clients and partners with the most cost effective and proven fibre connectivity solutions available.

Forward Looking Information

This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Lite Access uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Lite Access in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to Lite Access' expectations and predictions is subject to any number of risks, assumptions and uncertainties.  Many factors could cause Lite Access' actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things: the projected value of the contract awards from CityFibre, and risks and uncertainties described in Lite Access's most recent Management Discussion & Analysis (MD&A) for the period ended September 30, 2019 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, Lite Access undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.

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

SOURCE Lite Access Technologies Inc

Lite Access Technologies Inc., Carlo Shimoon, CEO, Phone: [phone], Unit 5 - 20678 Duncan Way, Langley, BC V3A 7A3, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: [phone], Email: [email protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5

Related Links

http://liteaccess.com/