Jul 29, 2010
SANTA MONICA, Calif., July 29 /PRNewswire-FirstCall/ -- Derycz Scientific, Inc. (OTC Bulletin Board: DYSC) announces that on July 23, 2010, the Company and its subsidiaries, Reprints Desk, Inc. and Pools Press, Inc., entered into a Loan and Security Agreement with Silicon Valley Bank for a $3,000,000 revolving line of credit that matures on July 23, 2011.
Peter Derycz, Chief Executive Officer of Derycz Scientific, said, "We are pleased that a financial institution with as solid a reputation as Silicon Valley Bank is on board to help us manage and grow our businesses. Since we are primarily a service company, our largest asset is our accounts receivable. This line of credit gives us the ability to borrow against the receivables in order to manage our business more effectively at a reasonable interest rate. It also gives us more flexibility to make payments to our suppliers that may result in more favorable terms."
According to the terms of the Agreement, the line of credit bears interest at the prime rate plus 2% for a period in effect where Derycz Scientific and its subsidiaries maintained an account balance with the Bank (less all indebtedness owed to the Bank) of at least $800,000 at all times during the prior calendar month (a "Streamline Period"), and at the prime rate plus 4% when a Streamline Period is not in effect. Derycz Scientific and its subsidiaries must pay the Bank a non-refundable commitment fee of $22,500 and a monthly collateral monitoring fee of $1,000 when a Streamline Period is in effect and $2,500 when a Streamline Period is not in effect. The line of credit is secured by all of the assets of Derycz Scientific and its subsidiaries.
About Derycz Scientific®
Derycz Scientific, Inc. (the "Company") develops companies, products, services and systems that facilitate the re-use of published content in a manner that helps organizations achieve their marketing, communication and research goals effectively and in compliance with copyright law and regulatory rules. Its subsidiary companies include Reprints Desk and Pools Press. Reprints Desk offers a one-stop solution for reprints, ePrints and single articles, and has delivered millions of articles worldwide. Reprint Desk is an innovator in content retrieval and ePrint delivery and its services are designed to help make effective use of published articles in a copyright-compliant manner. Pools Press has excelled in the reprint market for over 30 years. It provides professionally printed articles from medical and technical journals; prints booklets, catalogs, pamphlets, direct mail pieces, newsletters, and all business stationery; and works with publishers who wish to outsource a portion of or all of their reprints business. For more information, go to www.deryczscientific.com.
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company's SEC Filing. The Company assumes no obligation to update the information in this release.
SOURCE Derycz Scientific, Inc.