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CALGARY, AB, July 16, 2020 /CNW/ - Sylogist Ltd. (TSXV: SYZ) ("Sylogist" or the "Company"), a leading provider of cloud based ERP and CRM software solutions to the public sector, is pleased to announce that it has entered into a commitment letter with a Canadian chartered bank to obtain access to a $40 million credit facility. The commitment includes capacity to expand the credit facility subject to certain terms and conditions. The primary purpose of the credit facility is to fund acquisitions. The credit facility can also be used for general corporate purposes.
Availability under the credit facility is subject to the completion and registration of certain security and ancillary documentation. The credit facility is committed for the first year, and renewable annually subject to agreement between the lender and Sylogist, during which time Sylogist will pay no standby or commitment fees. Credit provided will carry a floating interest rate of the Canadian prime bank rate, currently 2.45%.
"The credit facility significantly increases Sylogist's capacity for transformative acquisitions. Together with cash on hand, we now have access to over $80 million with which to grow the Company. Low fees and flexible terms will allow us to modestly leverage our capital structure while maintaining industry-leading cash flow. As we position our highly profitable platform for expansion, this credit will help accelerate Sylogist's growth" stated Jim Wilson, President and CEO.
Sylogist is a technology innovation company that, through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of Public Sector customers. We are an industry-leading publisher of mission-critical software products that satisfy the unique and sophisticated functionality requirements of Public Sector entities, including nonprofit organizations, educational institutions and government agencies, as well as public compliance driven and funded businesses. Our Company delivers highly scalable, multi-language, multi-currency software solutions, which serve the needs of an international clientele.
The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at http://www.sylogist.com.
Certain statements in this news release may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements typically use words such as expect, believe, estimate, project, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the beliefs and plans and other forward-looking expectations expressed herein will not be achieved or will prove inaccurate. Although Sylogist believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the Company entering into a credit facility and the terms thereof, pursuing acquisitions and the Company modestly leveraging its capital structure. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include the Company entering into a credit facility and its ability to enter into acquisitions. Although Sylogist believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. Sylogist disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
- Neither 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 Sylogist Ltd.
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