NEW YORK, NY - (NewMediaWire) - March 31, 2023 - ILUS International Inc. (OTC: ILUS) is a Mergers and Acquisitions company focused on acquiring and growing companies in the public safety, industrial, defense and renewable sectors. The company confirms that it has secured a further $5.5 million in funding and ILUS is pleased to announce that from this funding, it has reached an agreement in principle with Discover Growth Fund LLC to settle their note of $2 million.
ILUS secured the $5.5 million in funding from RB Capital Partners, Inc. In a positive step forward for the company, the funding is being used for the arrangement made with Discover Growth Fund LLC to settle their $2 million note over a five-month period, thus ensuring that the note shall be fully paid and will not hit the market. The remainder of the funding is to be used for working capital and pending acquisition tranche payments.
In the current capital market downturn, access to capital is drying up across the board, resulting in harsher terms for capital and making it more expensive. Therefore, ILUS is pleased to have secured this round of funding from RB Capital following the evaluation of several options, with RB Capital’s terms proving the most suitable of the options. While additional funding was in negotiation with various funders in months prior, ILUS found that as a result of the deterioration taking place across the capital markets, the prospective funder’s terms got progressively worse in the final stages towards closing. Therefore, the ILUS board agreed that securing funding from RB Capital was the optimal route on a cost basis at this particular time. While offers from various funders remain on the table, the board agrees that these are not as suitable, specifically with regards to short to medium-term Shareholder value.
“Last year, RB Capital provided $5.7 million to our group which assisted in our expansion to nearly $80 million in annual revenue. Although such funding does require the free issue of shares, we have in general seen significant overall value from this. While we appreciate that Shareholders don’t like to see new shares being issued, it is important that companies such as ours can access capital for growth. We are entering what could be an aggressive recession and it is vital that we have working capital on hand as well as reliable access to capital to complete acquisitions. From our experience, RB Capital has been fully supportive of our business, have not been found to sell aggressively in the past and we believe they have responsibly managed their stock sales in the market. RB Capital’s funding and approach supported the solid growth of our group in 2022 and we expect the same in 2023,” said ILUS CEO, Nick Link.
RB Capital’s Brett Rosen commented: “I'm very happy to be part of the ILUS journey and to be able to make a contribution towards their exciting growth. Having witnessed their many accomplishments in 2022, I’m very much looking forward to partnering in their continued success in 2023.”
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