OAK PARK, MI, Oct. 5 /PRNewswire-FirstCall/ -- To support the company's growth strategy and provide financial flexibility, Azure Dynamics Corporation (TSX: AZD) secured a new multi-year credit facility through Silicon Valley Bank, the primary subsidiary of SVB Financial Group . The facility provides a line of credit up to $4 million over the next two years.
"As Azure continues to execute against our established strategic business plan, this line of credit provides an additional source of liquidity for our current working capital requirements," said Ryan Carr, chief financial officer at Azure Dynamics. "We appreciate the confidence Silicon Valley Bank demonstrated in our product portfolio and believe that this initial credit facility will serve as a solid foundation to grow from for additional working capital requirements as we achieve expected future growth."
Borrowings against the facility are based on eligible accounts receivable, including certain foreign receivables, inventory and purchase orders, making the facility scalable. This structure allows the Company to obtain liquidity at all stages of the sales cycle - from order, to inventory and receivables.
"Azure Dynamics is a first mover in bringing hybrid electric technology to the commercial vehicle market," said Mike Kohnen, senior relationship manager. "We have a deep appreciation for companies focused on clean technologies and we understand the unique capital requirements and flexible solutions that companies like Azure Dynamics require. By creating a tailored package to meet Azure Dynamics' needs, Silicon Valley Bank looks forward to helping the Company fund its mission to become 'Part of the Solution' by providing sustainable and efficient transportation alternatives."
Azure Dynamics is a leading manufacturer of hybrid electric and electric powertrains for the commercial vehicle market. Its Balance(TM) Hybrid Electric van and shuttle has been integrated into major vehicle fleets like Purolator Courier, FedEx Express, and USPS. Its newest product, the Ford Transit Connect Electric, is a pure electric version of the award winning Transit Connect. Early customers include AT&T, Xcel Energy and Johnson Controls Inc. Azure and Ford Motor Company recently announced that the Transit Connect Electric program would be expanded to Europe.
For more information on how Azure Dynamics products are Driving a World of Difference, please visit http://www.azuredynamics.com/.
About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with various partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally friendly energy management solutions. For more information, please visit http://www.azuredynamics.com/.
About Silicon Valley Bank
Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital, private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group , with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at http://www.svb.com/.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Private Client Services is a division of Silicon Valley Bank. SVB Financial Group is also a member of the Federal Reserve System.
Forward-looking Statements
This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.
The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labour and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at http://www.sedar.com/.
The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Azure Dynamics Corporation
CONTACT: ON AZURE, CONTACT: Mike Elwood, Vice President-Marketing, (905)
607-3486 x6203, Email: melwood@azuredynamics.com; Pat Liebler, Liebler Group,
(313) 832-4376, Email: pat@lieblergroup.com
