Ottawa-based ProntoForms has entered into a new financing deal with BDC Capital.
The deal will see BDC Capital, a subsidiary of the Business Development Bank of Canada, lend ProntoForms up to $4 million as part of a five-year secured term credit facility.
The company says the money will be used for operations and working capital as well as to pay back an existing $1-million loan from BDC Capital which is due in December 2017.
The first disbursement from the credit facility, of $2 million, is expected to take place before the end of the company’s current fiscal quarter.
BDC Capital will receive an interest rate of seven per cent per year and will also be allowed to buy up to 4,350,000 common shares of ProntoForms at a price of 45 cents.
Shares in the company (TSX-V: PFM) were trading at 32 cents on Tuesday afternoon. They haven’t closed above 40 cents since January 2015.
ProntoForms, which makes a mobile forms app for tablets and smartphones, has never turned a profit. It reported a net loss of $864,704 during the three-month period that ended on June 30, the most recent quarter for which financials have been released.