Virtutone Networks Inc., a technology company based in Sherwood Park, is looking to expand its wholesale division. The company has moved a step ahead in this area by securing additional financing under its bank facility agreement. With this arrangement, the technology company will be eligible to borrow up to $2,000,000. However, the company stressed that the outstanding borrowings should not at any time exceed 75 percent of accounts receivable, as defined in the agreement.
Along with this new facility, Virtutone also has access to a revolving lease facility for up to $120,000. In a press release, Virtutone informed that all borrowings bear interest at the bank's prime rate plus 1.7 percent, which has been reduced from the previous 2.5 percent based on Virtutone’s recently completed annual review of its financial condition. All borrowings are secured by all of the company’s assets.
Colin Campbell, chief financial officer at Virtutone Networks, said, “This new facility gives us needed flexibility as we continue to ramp up our wholesale business.”
Virtutone Networks offers managed telecommunication services including VoIP and IT-related products. About a month ago, the company secured contracts for an estimated 17.7 million minutes per month of wholesale long distance from customers in its very first month of wholesale operations. With this achievement, Virtutone surpassed its initial targets for its launch into the wholesale market. Virtutone announced of getting a tremendously positive response from Canadian, US, and international customers.
In mid-April, Virtutone Networks was in news when it announced the launch of a wholesale division, saying that it will provide telephony services to other carriers. With the help of Voice over Internet Protocol (VoIP) technology, the company plans to offer wholesale voice services to telephone companies, cellular companies, corporate clients, cable television companies, call centers, and Internet-based telephony companies.
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Edited by Rachel Ramsey