Wholesale VoIP Feature Article
Virtutone Secures Additional Financing
It’s official – Virtutone has secured additional financing under its bank facility agreement, which will help manage the growth of its wholesale division. Based in Sherwood Park, Virtutone Networks is listed on the TSX Venture Exchange in Canada. This arrangement now allows it to borrow up to $2,000,000.
The company notes, however, that the outstanding borrowings should not at any time exceed 75% of accounts receivable, as defined in the Credit Facility.
“This new facility gives us needed flexibility as we continue to ramp up our wholesale business,” said Colin Campbell, Virtutone's chief financial officer.
In addition to this new facility, Virtutone also has access to a revolving lease facility for up to $120,000, and says that all borrowings bear interest at the bank's prime rate plus 1.7 percent, which has been reduced from the previous 2.5 percent based on Virtutone’s recently completed annual review of its financial condition.
According to a release, all borrowings are secured by all of the company’s assets.
Virtutone Networks is a supplier of managed telecommunication services, including VoIP and IT-related products. The company was in news earlier this year for announcing its entry into the VoIP wholesale market with the launch of its wholesale division that provides telephony services to other carriers.
The technology company also selected Sonus Networks (News - Alert) of Massachusetts to provide a new, high-powered wholesale infrastructure that can offer up to 1.2 billion minutes per month to Virtutone customers.
In May 2012, the company additionally secured contracts for an estimated 17.7 million minutes per month of wholesale long distance from customers in its very first month of wholesale operations. Clearly Virtutone is on the right track!
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Edited by Allison Boccamazzo