MINM: Minim Secures $13.0 Million Credit Facility with Silicon Valley Bank
Press Release | 03/15/2021
Following record-breaking quarterly and year-end revenue results, the company announces new capital access to address increased demand in the rapidly growing $356 billion fixed broadband market
Manchester, NH, March 15, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Zoom Telephonics, Inc., doing business as Minim (OTCQB: MINM) ("Minim"), the creator of innovative internet access products, today announced that it has closed on a $13.0 million credit facility in partnership with Silicon Valley Bank in lieu of its previous $5.0 million credit facility. This announcement follows a record-breaking quarter and year in Minim’s revenue.
“We are pleased to work with Silicon Valley Bank on a credit facility that will assist Minim in seeking to sustainably accelerate growth,” said Sean Doherty, CFO of Minim. “From recent market analysis, we are optimistic that the post-pandemic era will bring continued reliance on telemedicine, hybrid remote work models, remote education, streaming entertainment, and Gigabit speeds—making performant, secure home WiFi a global imperative. Through our expanded credit facility, Minim will invest in sales, marketing, and new product introductions to address the demand for advanced connectivity products that homes need.”
Minim delivers smart software-driven communication products under the globally-recognized Motorola® brand. The company’s cable modem, gateway, router, and MoCA systems can be found in retailers and e-commerce channels nationwide, including: Best Buy, Target, Walmart, Microcenter, and Amazon. The company’s connectivity hardware and software are also available for purchase via over 130 Internet Service Providers and technology distributor Telarus.
"Minim is delivering high-quality software, hardware and services to connect customers and homes in the US and internationally," said Sarah Kwan, Vice President of Technology Banking at Silicon Valley Bank. "We are proud to work with the Minim team and support the company's growth."
For more information about Minim, visit www.minim.com.
About Minim
Zoom Telephonics, Inc., doing business as Minim (OTCQB: MINM) is the creator of innovative internet access products that dependably connect people to the information they need and the people they love. Headquartered in Manchester, NH, the company delivers smart software-driven communications products under the globally recognized Motorola® brand. Minim end users benefit from a personalized and secure WiFi experience, leading to happy and safe homes where things just work. To learn more, visit www.minim.com.
Here's the summary from the 8k:
On March 12, 2021, Zoom Telephonics, Inc. (the “Company”) terminated the Financing Agreement, dated as of December 18, 2012, as amended (collectively, the “Financing Agreement”), with Rosenthal & Rosenthal, Inc. (“Rosenthal”) in connection with the Company’s entry into the Credit Agreement (as defined below). The Company paid Rosenthal all outstanding borrowings and other amounts owed by the Company under the Financing Agreement in connection with the termination of the Financing Agreement.
The disclosures provided in Item 2.03 of this Current Report on Form 8-K are hereby incorporated by reference into this Item 1.02.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On March 12, 2021 (the “Effective Date”), the Company and its wholly-owned subsidiary Minim Inc. (“Minim”) entered into a Loan and Security Agreement (the “Credit Agreement”), with Silicon Valley Bank (“SVB”).
The Credit Agreement provides the Company with a maximum revolving credit line of $13 million (the “Revolving Line”). Borrowings under the Credit Agreement are secured by all of the assets of Minim and the Company. The Company anticipates that it will use the borrowing capacity for general corporate purposes, including funding its working capital requirements. SVB was paid a one-time, non-refundable revolving line commitment fee of $24,000 on the Effective Date. The floating per annum interest rate under the Credit Agreement will range between 3.75% to 4.25%, with a minimum interest rate per month of $14,000. The maturity date is 24 months from the Effective Date. If the Credit Agreement is terminated for any reason prior to the maturity date, in addition to the payment of any other amounts then-owing, the Company must pay a termination fee in an amount equal to 2.0% of the Revolving Line if such termination occurs prior to the first anniversary of the Effective Date, or 1.0 % of the Revolving Line if such termination occurs on or at any time after the first anniversary of the Effective Date.
The Credit Agreement contains certain customary covenants, including a restriction from declaring any dividends, redeeming or repurchasing any stock, or making any investment, loan or capital contribution in any third party. In addition, the Company is restricted from making material dispositions or transfers of assets, or making any changes in the Company’s business, management, control or business locations. The Credit Agreement provides for customary events of default. Upon an event of default, SVB has the right to declare all outstanding obligations as immediately due and payable, which will bear interest at 5.0% above the otherwise then applicable interest rate.
The foregoing summary is subject to, and qualified in its entirety by, the full text of the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein.
