Toronto, ON – November 5, 2019 – VersaPay Corporation (TSXV: VPY) (“VersaPay”), a leading provider of cloud-based invoice-to-cash solutions including electronic invoice presentment and payment, automated accounts receivable, cash application and collections management, is pleased to announce the closing of a credit facility with National Bank of Canada’s Technology and Innovation Banking Group (“NBC”). The facility consists of a $4.0 million revolving credit facility (the “Facility”) which matures in April 2021, extendable thereafter.
“I’m pleased we’ve been able to put this facility in place with a great partner like NBC,” said Craig O’Neill, Chief Executive Officer. “Its an efficient way to optimize our working capital and a testament to the growth we’ve achieved in our recurring revenues from ARC.”
“As an active member in Canada’s innovation ecosystem, National Bank is pleased to partner with VersaPay, a leading provider of cloud-based payments solutions,” said David Looi, Senior Director with NBC’s Technology and Innovation Banking Group. “With over 20 years of experience helping companies like VersaPay, our team offers support, advice and financial services tailored to the needs of technology businesses from start-up through to maturity.”
The Facility is secured by assets of VersaPay and its US subsidiary, which primarily consists of intellectual property and accounts receivable. The proceeds of the Facility will be used for general corporate and working capital purposes.
Pursuant to the agreed upon conditions of the Facility, the Company can draw down funds as required based on a multiple of the monthly recurring revenue (“MRR”) of its ARC software product. Pricing is set at the Prime Rate plus 2.0% per annum for the Facility, and contains customary financial and restrictive covenants.
VersaPay is a Fintech company and leading provider of cloud-based invoice-to-cash solutions, enabling businesses to provide a superior customer experience, get paid faster, streamline financial operations, and dramatically reduce DSO and costs. VersaPay ARC is the new standard in accounts receivable and collections management with a customer self-service environment to view invoices online, collaborate on inquiries and disputes, and facilitate secure online payments (EFT/ACH and credit card). Businesses gain access to a suite of powerful tools that enable efficient collections, cash application and real-time insight into accounts receivable. VersaPay ARC automatically reconciles payments and account information through integrations with a wide range of ERPs and accounting software providers.
For additional information, please contact:
Vice President, Marketing
Virtus Advisory Group Inc.
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Such forward-looking information is often, but not always, identified by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company’s business, the Company’s formative stage of development and the Company’s financial position.
Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
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