Apr. 26, 2011 (PR Newswire) --
ATLANTA, April 26, 2011 /PRNewswire/ -- Numerex Corp (NASDAQ: NMRX), a leading provider of business services, technology, and products for the worldwide machine-to-machine (M2M) market, today announced that it has increased its revolving credit facility with Silicon Valley Bank to $10 million and, in a separate transaction executed on the same day, the filing of a $30 million universal shelf registration statement.
"We are very pleased with Silicon Valley Bank's support and the confidence they have exhibited in the Company and in our M2M business model," stated Alan Catherall, CFO of Numerex. "With this expanded credit facility and the shelf filing, we have better positioned Numerex to take advantage of strategic opportunities, if and when they arise. At the present time, we have no specific plans to issue securities under the registration statement."
The Company has amended its existing credit facility with Silicon Valley Bank to increase the revolving line of credit by $5 million to a total of $10 million with a new 4-year term that will be available for general working capital needs and issuance of letters of credit. "We expect that the M2M sector will exhibit strong future growth so we're pleased to be in a position to assist Numerex with an expanded revolving line of credit," said Andy Rico of Silicon Valley Bank in Atlanta. "The additional flexibility this financing provides will help Numerex achieve its growth goals and we wish them ongoing success."
Numerex also announced, today, the filing of a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC"). When the registration statement is declared effective by the SEC, Numerex will be able to offer and sell up to $30 million of equity securities as described in the registration statement. The terms of any offering under the shelf registration statement will be determined at the time of offering. Proceeds from the sale of any securities will be used for the purposes described in a prospectus supplement filed at the time of an offering.