Ackroo receives approval to increase existing line of credit to support continued growth
OTTAWA, Aug. 23, 2018 (GLOBE NEWSWIRE) — Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (“Ackroo” or the “Company”), a gift card and loyalty marketing technology and services provider, has received approval from the Royal Bank of Canada (RBC) in cooperation with Export Development Canada (EDC) to increase their current revolving line of credit from $200,000 to $350,000. The increase is being underwritten by EDC following a review of the Company’s current financial position and its planned expansion into the United States. The facility bears an interest rate of RBC’s prime plus 2%.
“Expansion of our credit facilities are important next steps for Ackroo and our shareholders,” said Steve Levely, Chief Executive Officer at Ackroo. “Now that the Company is delivering positive EBITDA, we have many more options for accessing additional capital. 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. We first looked to EDC to underwrite our increase in our line of credit because of our plans to further penetrate the US market. Today only 8% of our total revenues come from the US and we expect this number to more than double in the next 2 years. EDC’s mandate is to help Canadian companies expand into foreign markets and so we are very happy to receive their support. This is just the first small step in our relationship with EDC. As we begin this next chapter of Ackroo, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the Company and our shareholders.”
Ackroo provides automotive, petroleum, hospitality and retail merchants of all sizes a robust, cloud-based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Through a SaaS-based business model Ackroo provides an in-store and online automated solution to help merchants process gift card, loyalty and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo’s technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
Chief Executive Officer | Ackroo
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This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.