Funding Update (9215C)

TIDMADID TIDMADIS

RNS Number : 9215C

Armor Designs, Inc.

15 March 2011

 
 Press Release   15 March 2011 
 

Armor Designs Inc.

("Armor Designs" or "the Company" or "ADI")

International Bank Financing

Armor Designs Inc., (AIM: ADID, ADIS), the knowledge-based designer and manufacturer of composite armour products, is pleased to announce that GBC International Bank ("GBCIB") has, extended to ADI, a $700,000 USD credit facility in the form of a "transaction specific" revolving line of credit, to be used for the fulfillment of international purchase orders and for international accounts receivables. GBCIB is a an international trade bank, located in Monterey Park, California, and is a "Preferred Lender" for the U.S. Small Business Administration ("SBA") and ranks fifth in the U.S.A. as a "Delegated Authority Lender" for the U.S. Export Import Bank ("EXIM").

Under the terms of the credit facility, Armor Designs, LLC is extended a one-year renewable revolving line of credit with an initial borrowing base of $700,000 USD. The type and purpose of the credit facility is a "transaction specific" line of credit to be utilized for advances on pre-shipment financing and post-shipment financing. The initial $700,000 USD government-backed loan guarantees will be provided by the SBA, but future loan guarantees may also come from the EXIM loan guarantee program, depending on the type of "transaction".

Other conditions of the debt facility are advance rates on up to 75% on eligible export related pre-shipment inventory and up to 90% on export related accounts receivable. Advances on the line of credit will bear interest at a fixed rate of 7.5%. As a form of collateral, GBCIB and the SBA/EXIM government agencies require a first security interest in the assets of ADI. In addition, GBCIB and SBA require ADI and Hawthorne & York International, Ltd. (parent company of ADI) to be corporate guarantors. The loan will have typical SBA loan fees, reporting requirements, audit requirements, and other standard banking requirements that are common in the industry and common for all SBA/EXIM guaranteed loan programs.

GBCIB is also in discussion with ADI on a SBA domestic credit facility for use for domestic purchase orders and domestic accounts receivables.

Phil Clement, CEO, commented "Signing of the International Bank facility allows ADI to commence fulfillment of orders and move the business forward".

For further information please contact:

 
 Armor Designs, Inc. 
 Phil Clement, Interim CEO       Tel: [phone] 
                                  4633 
 [e-mail]   www.armordesigns.com 
 

Shore Capital and Corporate Ltd.

Anita Ghanekar

Edward Mansfield Tel: [phone]

Notes to editors

GBCIB is a "Preferred Lender" of the SBA for both their Export Express Program and the Export Working Capital Program. As a result of the passing of the $30,000,000,000 USD Small Business Job Act, GBCIB is now approved to extend their SBA working capital loans up to a limit of $5,000,000 USD per borrower. In addition, as a "Delegated Authority Lender" of the EXIM bank, GBCIB has been granted authority to approve its EXIM loan guarantees up to a limit of $5 million per transaction. With the designations, of "Preferred Lender" and "Delegated Authority Lender", GBCIB is enabled to approve, activate, and increase lines of credit in a more expeditious manner to further support U.S. exports.

Armor Designs, Inc. ("ADI") is a knowledge-based company specializing in next-generation composite material design, manufacture, prototyping and testing for applications and products for the armor industry. ADI uses a proprietary design and manufacturing process called VCM to rapidly develop new composite armor products of superior ballistic, weight and flexibility. The VCM process is protected by patents and trade secrets licensed to ADI in perpetuity for use in field of armor.

For more information on Armor Designs, Inc., please go to www.armordesigns.com

This information is provided by RNS

The company news service from the London Stock Exchange

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