Orbite closes C$22M non-dilutive debt facility

Orbite Technologies Inc. announced that it has completed a secured debt financing totalling up to C$22 million (or US$16.95 million) in the aggregate. The Facility is comprised of a US$6.5 million revolving credit facility, term loan A (US$0.45 million) and term loan B (US$10.0 million) - all with MidCap Financial.

The credit facility and term loans with MidCap will bear interest at the London Interbank Offered Rate (or Libor) rate, which shall be no less than 0.5% (currently 0.2%), plus 6.5%.

"Having successfully commenced commissioning of sections of our HPA plant, we have now secured the remaining funds required for completion and full commissioning of the facility, and to cover our working capital requirements beyond the start of commercial production, expected in the fourth quarter of this year," stated Glenn Kelly, CEO of Orbite.

Claude Lamoureux, Chairman of the Board of Orbite, commented, "We believe this new financing arrangement reflects the considerable progress Orbite has made this past year. Fully in line with our Board objectives, Glenn and the entire team at Orbite have worked diligently and successfully towards the pursuit of non-dilutive financing and the creation of shareholder value by advancing the company towards a position in which commercial production is anticipated imminently. This was key in securing this new and competitive financing arrangement."

A portion of the revolving credit facility and term loan A will be repayable as the Investment Tax Credits payments for the 2014 financial year are received by the company, while the term loan B principal is repayable in 36 equal monthly installments starting on December 1, 2016. The balance of the revolving credit facility will be used to finance the company's eligible receivables. The Facility is subject to certain reporting, financial and other customary conditions.

Orbite also announced that IQ has agreed to increase the amount of its second secured bridge loan, initially granted in June 2015 in the amount of C$5 million, to C$7.6 million. This loan is collateralized against the Company's ITC receivables for the 2015 and subsequent financial years, and is repayable upon receipt by the Company of ITC payments for the 2015 financial year from tax authorities, but in no event later than June 30, 2017. Other terms for the loan with IQ remain unchanged, with interest payable at prime (presently 2.7%) plus 3.5%.

Mr. Kelly concluded, "We would like to thank Investissement Quebec for their continued commitment to the Company and their support in helping us advance our business plan."