SmarTire Systems, which makes wireless tyre pressure monitoring equipment for vehicles, has arranged new finance for its growth plans.
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The company will sell convertible debentures valued at up to $US1,800,000. It recently sold one convertible debenture for gross proceeds of $684,000 and the agreement provides that SmarTire may sell convertible debentures for the balance of up to $1,116,000 at any time over the next six months.
SmarTire CFO Jeff Finkelstein said: “As reported on 10 December, 2006, our first quarter results showed a continuing trend of year-on-year revenue growth and major players in the commercial vehicle industry have advised us that they plan to begin ordering our products.
“This indication was further supported last week with the announcement by DaimlerChrysler Commercial Buses that they will begin supplying SmarTire products to their customers. As this revenue growth trend continues throughout 2007, it is most important that we have the working capital necessary to respond to this increase in product demand.
“The actions recently undertaken to reduce our operating costs and the infusion of the net proceeds from the first tranche of this financing represent major steps in satisfying our working capital requirements going forward.”
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