Braintech Inc. Closes $3 Million Financing With Silicon Valley Bank
Developer of software products for Vision Guided Robotic (VGR) Closes $3M Loan Facility.
Developer of software products for Vision Guided Robotic (VGR) solutions to draw down $1.55M of to pay for debt and provide working capital.
Braintech Inc. (OTC BB: BRHI) has closed a $3 million loan facility with Silicon Valley Bank, Chief Executive Officer Rick Weidinger announced today. The loan facility consists of a $2.2 million term loan and an $800,000 working capital loan facility.
Braintech will draw down $1.55 million of the loan to lower its borrowing cost and fully pay its debt to its letter of credit providers and to provide working capital for the Company to operate and continue developing its world-class Vision Guided Robotics technology. The new loan facility will be interest only for 18 months from closing and will then convert to an18-month principal-and-interest term loan with a final maturity 36 months from closing.
Five shareholders provided $1.55 million of back-stop security for the new loan with the CEO Rick Weidinger being the largest provider. The Company will consider additional back-stop security for up to a total of $2.2 million by year-end 2009. Additionally, Braintech founder, director and shareholder Owen Jones converted his letter of credit debt to equity and agreed to invest additional funds into the Company by year-end 2009.
“We’re very pleased to secure the financing and investment that will allow Braintech to grow and continue to develop its world-class technology,” Weidinger said. “We have industry-leading software with a focus on government and defense applications and we are continuing to work with industrial companies as the economy begins to recover and capital budgets reappear. Looking on the horizon, we have some exciting products scheduled for release during the First Quarter of 2010.
“The Company has a very supportive group of shareholders, directors and employees who strongly believe in the future of our business.”
About Braintech Inc.
Braintech’s (OTC BB: BRHI) software products offer robust, scalable and transferable Vision Guided Robotic (VGR) solutions used for industrial, and government & defense service applications. The company’s software is being utilized every day with over 170 installations worldwide. Braintech’s customers include Toyota, Johnson & Johnson, Boeing, Harley-Davidson, Chrysler, Delphi, Honda, GM, Ford, Nissan, BAE Systems, Makino and ABB. The company has offices in McLean, Virginia, Pontiac, Michigan, and Vancouver, British Columbia, Canada.
For more information, visit: http://www.braintech.com