Initial drawdown of $7.5M completed, with agreement for future financing
SANTA ANA, Calif. and ISMANING, Germany, November 1, 2012 -
Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV), a
provider of products and services for the identification,
security and RFID industries, today announced that it has
entered into a $10 million secured loan agreement with
Hercules Technology Growth Capital, Inc. (NYSE: HTGC). On
October 30, 2012, Identive received an initial advance of
$7.5 million, and has the opportunity to borrow an
additional $12.5 million for a total of $20 million subject
to terms and conditions set forth in the agreement.
The initial drawdown of $7.5 million is in the form of a
three-year promissory note that bears interest at a rate of
the greater of the prime rate plus 7.75% or 11.00%. The
Company's ability to borrow additional funds under the loan
agreement is subject to its ongoing compliance with a
number of customary financial and other covenants as
described in the loan agreement.
David A. Wear, CFO of Identive commented, "Our success in
securing non-dilutive financing on market terms with a
premier technology lender not only gives us an important
cushion against business downturn, but enables us to fund
working capital growth requirements. Access to this
additional liquidity allows us to manage our growth
business needs more efficiently as we continue to invest in
and build upon emerging opportunities in the secure
identification market."
Hercules Technology Growth Capital is a leading specialty
finance company based in Palo Alto, California and focused
on providing senior secured loans to venture capital-backed
companies in technology-related markets.
Piper Jaffray & Co. acted as exclusive financial advisor
and sole placement agent to Identive on the loan
transaction.
About Identive
Identive Group, Inc. (NASDAQ: INVE; Frankfurt: INV) is
focused on building the world's signature company in Secure
ID. The company's products, software, systems and services
address the markets for identity management, physical and
logical access control, cashless payment, NFC solutions and
a host of RFID-enabled applications for customers in the
government, enterprise, consumer, education and healthcare
sectors. Identive's mission is to build a lasting business
of scale and technology based on a combination of strong
technology-driven organic growth and disciplined
acquisitive expansion. The company delivers up-to-date
information on its activity as well as industry trends
through its industry-leading social media initiatives and
educational resource, AskIdentive.com. For additional
information, please visit www.identive-group.com or follow
on Twitter at @IdentiveGroup.
Note Regarding Forward Looking Information:
This press release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking
statements can be identified by words such as
"anticipates," "believes," "plans," "will," "intends,"
"expects," and similar references to the future. Examples
of such statements include, without limitation, statements
we make regarding our ability to manage the growth of our
business and working capital requirements. Readers should
not unduly rely on these forward-looking statements, which
are not a guarantee of future performance and are subject
to a number of risks and uncertainties, many of which are
outside our control, which could cause our actual business
and operating results to differ. Factors that could cause
actual results to differ materially from those in the
forward-looking statements include our ability to implement
our growth strategy, to successfully develop and
commercialize new products and solutions, our ability to
meet our sales forecasts, and our ability to meet financial
covenants of our loan agreement. For a discussion of
further risks and uncertainties related to our business,
please refer to our public company reports, including our
Annual Report on Form 10-K for the year ended December 31,
2011 and subsequent reports filed with the U.S. Securities
and Exchange Commission. All forward-looking statements are
based on information available to us on the date hereof,
and we assume no obligation to update such
statements.
Contacts:
Darby Dye, +1 949 553-4251, This e-mail address is being
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Lennart Streibel, +49 89 9595-5195, This e-mail address is
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