Cadmus Secures $7.4m To Expand Lease Book
Auckland - April 5, 2001 - Payment solutions and data management services provider, Cadmus Technology Limited (NZSE: CTL), today announced that it had arranged a $7.4 million financing facility to accelerate the growth of its equipment rental business.
Cadmus has entered into a brokered agreement with private financiers who will provide the funds to underwrite development and growth of its equipment leasing book, which is currently funded internally. The agreement addresses the additional funding required as a result of recent sales wins, including the delivery of the initial 1,200 of 3,000 terminals to Bartercard, and will support future sales and rental activity.
Under the agreement Cadmus will maintain all rights in the equipment and its customers and retain the equipment on its asset register and balance sheet. Security has been arranged over Cadmus subsidiary, Turton Holdings Limited, by entering into a separate debenture agreement.
“The need to arrange funding is driven by our increased sales and growing market share,” says Managing Director, Ian Bailey. “As a result of this agreement we will be able to continue that expansion without compromising either our balance sheet or cashflow.”
Cadmus Technology Limited is an end-to-end payment solution and data management services provider. It operates a number of unique interfaces into the NZ EFTPOS infrastructure enabling the capture and processing of information relating to customer spend, as well as the processing of in-house and private label cards.
Clients include the Vodaphone Warriors Rugby League, Bartercard, Stihl, TrustPower, and many of the major motor vehicle importers and distributors.
Cadmus has a 50% interest in Pospower Limited, via a joint venture agreement with TrustPower, a 50% interest in a joint venture with E-Smart Card Technologies Limited and a 4.55% strategic shareholding in Insight Technologies (Asia Pacific) Pty Limited. For more information, please visit www.cadmus.co.nz