Aftersoft Group completes financial agreement
Aftersoft Group Inc. reports it has successfully completed a revolving credit and term loan agreement with ComVest Capital LLC, raising $6 million in new funds for working capital and other general corporate purposes.
Under the agreement’s credit facility, the lesser of $1 million or an amount based on eligible accounts and inventory will be available to Aftersoft through at least Nov. 30, 2009. In connection with the credit facility, the company has issued to ComVest a revolving credit note of $1 million, bearing interest at the greater of 9.5% or the prime rate plus 2%.
Under the term loan agreement, the company has issued to ComVest a $5 million convertible term note with a final maturity of Nov. 30, 2010. The term note bears interest at 11% and is initially convertible into shares of Aftersoft Group common stock at $1.50 per share.
In connection with the loan agreement, Aftersoft also has issued warrants to ComVest to purchase a total of 4,083,333 shares of Aftersoft common stock, at exercise prices ranging from $0.3125 to $0.39 per share, through Dec. 31, 2013.
Further details about the financing are available in the Form 8-K Report filed today with the Securities and Exchange Commission.
Ian Warwick, chairman and CEO of Aftersoft Group, said, “We have successfully completed a complex financing agreement in a difficult market environment, which reflects the value, stability and growth potential of Aftersoft’s diverse businesses in the automotive aftermarket. Our management team can now turn its full attention to building those businesses, with the ultimate goal of duplicating in the U.S. and other markets the growth and success we have achieved in the U.K. In addition, we can now accelerate our efforts to complete the spin-off of Aftersoft from Auto Data Network.”
Aftersoft Group LLC is a supplier of software and services to the automotive aftermarket in the U.S., U.K. and Canada. It provides a combination of business management systems, information products, and online services that "together deliver benefits for all parties involved in the timely repair of a vehicle," the company says.
For more information, visit the company's Web site at www.aftersoftgroup.com.