Identiv Improves Working Capital to Support Growth in 2021
February 11 2021 - 7:00AM
Identiv, Inc. (NASDAQ: INVE), a
global leader in digital security and identification, today
announced that the company has amended its short term debt facility
with East West Bank (“EWB”) and the second of two promissory notes
to 21 April Fund to ensure the company has access to the working
capital required to support its anticipated growth in 2021.
On February 8, 2021, Identiv entered into a two-year extension
of its current loan and security agreement with EWB. The extension
includes:
- Lower interest rates of prime + 25bps for the first half of
2021, which will subsequently decrease to prime with no floor if
compliance is maintained with all covenants
- A one-year increase in the total facility from $20 million to
$24 million
- No additional warrants
Additionally, the company modified the maturity date of its
remaining short term note with 21 April Fund to March 31, 2021. The
amendment, which is interest free and contains no additional
warrants, provides Identiv with flexible access to capital during
the first quarter.
Both amendments have resulted in improvements to Identiv’s
working capital, which will support the company’s anticipated
growth in 2021.
"With positive cash flow from operations in the fourth quarter
of 2020, we were able to pay down debt and leave capacity on our
revolver untapped at year end,” said Identiv’s CFO, Sandra Wallach.
“By reducing our interest rates, we’ve decreased our borrowing
costs, and we expect to further reduce these costs by paying down
debt from cash flows during 2021. These improvements to our balance
sheet have placed us in a stronger position to capitalize on the
tailwinds driving our business in 2021 and beyond. We appreciate
the continued confidence from our partners at East West Bank and
our long-term investors.”
About IdentivIdentiv, Inc. is a global leader
in digitally securing the physical world. Identiv's platform
encompasses RFID and NFC, cybersecurity, and the full spectrum of
physical access, video, and audio security. Identiv is a publicly
traded company, and its common stock is listed on the NASDAQ Stock
Market LLC in the U.S. under the symbol “INVE.” For more
information, visit identiv.com.
Note Regarding Forward-Looking InformationThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are those involving future events and
future results that are based on current expectations as well as
the current beliefs and assumptions of the Company’s management and
can be identified by words such as “anticipates”, “believes”,
“plans”, “will”, “intends”, “expects”, and similar references to
the future. Any statement that is not a historical fact, including
statements regarding the Company’s beliefs regarding the benefits
of the amendments to its short term debt facility and its
promissory note, the Company’s beliefs regarding its access to
working capital, working capital needs, and the potential uses of
its working capital, the Company’s beliefs regarding its expected
growth, its expectation that it will pay down borrowings from cash
flows, and the Company’s belief that the improvements to its
balance sheet have placed it in a stronger position to capitalize
on the tailwinds driving its business in 2021 and beyond is a
forward-looking statement. Forward-looking statements are only
predictions and are subject to a number of risks and uncertainties,
many of which are outside our control, which could cause actual
results to differ materially and adversely from those expressed in
any forward-looking statements. Factors that could cause actual
results to differ materially from those in the forward-looking
statements include, but are not limited to the Company’s ability to
continue the momentum in its business, its ability to successfully
execute its business strategy, the level and timing of customer
orders, the success of its products and partnerships, industry
trends and seasonality, the impact of COVID-19, and factors
discussed in its periodic reports, including its Annual Report on
Form 10-K for the year ended December 31, 2019 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.
Investor Relations Contact:Matt Glover and
Charlie SchumacherGateway Investor Relations+1
949.574.3860IR@identiv.com
Media Contact:press@identiv.com
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