Specialist finance and advisory firm Trafalgar Capital Advisors (TCA) has executed both a term sheet for financing and an advisory agreement with US-listed Turkey-based TouchIT Technologies (TUCN.OB), a leading manufacturer of touch-based visual communication products.
The relationship has commenced with an expandable USD1m asset backed loan from TCA Global Credit Master Fund LP, TCA’s master feeder fund. The ABL Line which has a 12 month maturity allows the company access to 80% of its eligible receivables in advance reconciled twice monthly. The company has already begun to utilise this facility.
Andi Brabin, Chief Financial Officer at TouchIT Technologies, says: “We made the decision to accept this offer, firstly because it is not dilutive to our shareholders, and secondly it is scalable and can grow as our working capital requirements grow.
“Being able to fund the growth that we are experiencing is a challenge. By virtue of our customers being located in multiple countries, the execution of this type of facility is complicated. With TCA’s financial backing, as well as their eminent expertise, we will be able to build more products in a timelier manner so ultimately our customers will benefit”.
Bob Press (pictured), Founding Partner and CIO of Trafalgar Capital Advisors, says: “We are delighted to complete this transaction. TouchIT Technologies is very much a market leader in its sector. We specialise in funding small and mid-cap companies and TouchIT Technologies is a welcome addition to our portfolio of clients. Small-business financing and advisory services have recently become very politically correct, as SMEs generally produce the majority of net jobs in each economic cycle. There are broad based opportunities for these services.”