Identive Secures Loan from Hercules Technology Growth Capital
Identive Group, Inc. (NASDAQ: INVE) 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