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Redline Communications Secures $10 Million Credit Facility
[October 09, 2012]

Redline Communications Secures $10 Million Credit Facility

TORONTO, Oct. 9, 2012, 2012 (Canada NewsWire via COMTEX) -- -- Financial partnership helps fuel Company growth -- Redline Communications ( Group Inc. TSX: RDL), a leading provider of broadband wireless solutions for machine-to-machine (M2M) communications, today announced that they have finalized a $10 million credit facility with HSBC Bank Canada ("HSBC") and have amended their loan agreement maturing in 2019 with the Ontario Ministry of Economic Development and Innovation ("MEDI"). These new banking arrangements will provide short and longer term funding to the Company to allow for continued growth by leveraging working capital without diluting Company shareholders.

"Our new relationship with HSBC allows us to pursue our growth strategies," said Eric Melka, Redline's chief executive officer. "This flexibilty is particularly important in the fast-growing energy market where our successes have been with multi-million dollar projects where increased flexibility in working capital is required. We are delighted to be working with HSBC, the right choice for Redline because of the good fit with our global business." Under the new banking arrangements, HSBC will provide a $10 million revolving demand credit facility at prime plus 1.5 percent. The availability under the revolving facility is subject to certain borrowing base calculations based on accounts receivable. The maximum draw on the revolver, currently $7M, will expand to $10M when fiscal year reporting supports performance expectations. HSBC will also provide treasury management solutions for Redline.

The Company's pre-existing arrangement with MEDI has been amended to give HSBC a first ranking on accounts receivable and forgive certain interest charges in exchange for a $750 thousand principle repayment by the Company at closing and a $500 thousand principle repayment in July 2014. Interest on the MEDI loan is at 4.15 percent.

"Our partnership with MEDI is strong and we very much appreciate their guidance, assistance and commitment to technology," added Melka. "Their program and team have allowed us to accelerate our product development activities through what was a pivotal turnaround period for the Company and we thank them for their continued support." About Redline Communications Redline Communications ( is the innovator of Virtual FiberTM, a specialized broadband wireless solution used to cost-effectively deploy and extend secure networks, enable M2M applications, connect digital oil fields and smart grids, facilitate and enhance public safety networks, and bring Internet access wherever and whenever it's needed - regardless of terrain or how remote. For more than a decade Redline has delivered powerful, versatile and reliable wireless solutions to governments, militaries, oil and gas companies and telecom service providers through its global network of certified partners. For more information visit

Forward Looking Statements Certain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking statements can be identified by terms such as "could", "expect", "may", "will", "anticipate", "believe", "intend", "estimate", "plan", "potential", "project" or other expressions concerning matters that are not historical facts. Readers are cautioned not to place undue reliance upon any such forward-looking statements.

Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management's current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.

Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Redline's performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline's suppliers and contract manufacturing agreements including the Company's reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline's efforts to expand internationally; a failure to protect Redline's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the "Risks"). For additional information on these Risks, see Redline's most recently filed Annual Information Form ("AIF") and Annual MD&A, which are available on SEDAR at and on the Company's website at Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.

SOURCE: Redline Communications Group Inc.

To view this news release in HTML formatting, please use the following URL: SOURCE: Redline Communications Group Inc.

Redline Contact George Kypreos (905) 479-8344 x2291 Twitter:@rdlcom Press Kit:

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