Inventronics Announces Early Repayment of Subordinated Debt

 

New Conventional Financing Signals Turnaround Complete

 

Calgary, Alberta – (April 19, 2007)Inventronics Limited (IVX:TSXV), a designer and manufacturer of custom metal enclosures for the communications, electronics and other industries in North America, today announced that it has repaid $3,500,000 of subordinated debt from the proceeds of a new loan.

 

The five year subordinated secured debt was due in full in on December 31, 2007 and bore interest at 8% per annum. Through arrangements with BMO Bank of Montreal, Inventronics has secured a term/demand loan in the amount of $3,500,000. This new facility is repayable over 76 months with monthly payments that vary over the term. The interest rate is fixed for five years at 6.3%. As part of the overall arrangement Inventronics also has a $2,000,000 demand operating facility. None of the operating loan is currently drawn.

 

“This is a very important transaction for Inventronics”, said Dan Stearne, President & CEO. “The subdebt loan was critical five years ago for the survival of the Company. The repayment through conventional lending at a favourable interest rate is a clear signal that the turnaround of the company has been successful. Now with specific cash requirements for repayment and no other debt obligations, not even operating debt, we will be able to generate free cash flow.”

 

About Inventronics

Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electronics, traffic controls, electric utilities and computer services industries in North America. Inventronics’ enclosures are sophisticated products that function as permanent packaging to address a variety of customer concerns including security, protection from the outside environment, ventilation and thermal management, noise abatement, aesthetics and styling, electromagnetic compatibility and component integration. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba, and has sales and corporate offices in Calgary, Alberta.

 

Shares of Inventronics are traded on the TSX Venture Exchange under the symbol “IVX” (formerly IVT:TSXV).  For more information about the Corporation, its products and its services, go to www.inventronics.com.

 

Disclaimer

This news release contains forward looking information that represents the Corporation’s internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or the Corporation’s future economic performance.  These statements relate to future events or future performance.  All statements other than the statements of historical fact may be forward-looking statements.  In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expects”, “projects”, “plans”, “anticipates”, and similar expressions.  The projections, estimates and beliefs contained in such forward-looking statements are based on management’s assumptions relating to the production performance of Inventronics’ assets, the cost and competition throughout the telecommunications industry in 2006, and the continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to exchange rates, costs of production, outlook for sales, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.  Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.  The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

11,404

FOR FURTHER INFORMATION PLEASE CONTACT:

Dan J. Stearne, President and CEO                      (403) 265-4880, dstearne@inventronics.com