Intermoco secures $4.5m funding facility
- 05 October, 2011 08:51
Embedded networks company Intermoco (ASX:INT) has secured a $4.5 million long-term funding facility, and has hinted at using some of the funds to pursue possible acquisitions.
The company — which provides water, energy, voice and data management solutions including internet-enabled metering — said it had entered a convertible note facility with La Jolla Cove Investors.
The facility consists of three separate notes of $1.5 million, bearing interest payable monthly of 4.75 per cent per annum. Dependant on share price, Intermoco will be able to draw down between $100,000 and $200,000 per month.
Intermoco CEO Ian Kiddle said the facility will provide the company with working capital to pursue initiatives tied to its new Intermoco Connect embedded networks business model.
“[The funds] will also allow us to consider possible investment opportunities if they arise,” he added.
Chairman John Evans said the agreement is significant, as it “comes at a time when funds have been difficult to obtain, given prevailing market conditions.”
The note holder will be able to choose whether to convert the notes into shares, and the agreement stipulates a maximum conversion price of three cents per share.
INT shares stayed flat on Tuesday at $0.003.
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