BrandShield secures credit facility with Leumi Bank

(Sharecast News) - Brand protection technology company BrandShield Systems has entered into an agreement with Leumi Bank to provide a revolving monthly recurring revenue (MRR) credit line facility of up to NIS 8m (£1.8m), it announced on Monday.
The AIM-traded firm said the two-year new debt facility, which could be extended upon request, included a "competitive" interest rate, and no associated requisite equity instruments or warrants.

It said the drawdown would be used to support the group's ongoing growth.

The new facility would allow drawdown of up to 4x MRR net of churn, and included covenants of a type the board described as "typical" of such an agreement.

As it reported in its interim results on 13 September, the company's annual recurring revenue was $4.32m at the end of August, having increased 79% since the same point in 2020.

"We are delighted to have secured this new facility with Leumi - one of Israel's largest banks - providing a strong endorsement of our ongoing strategy," said chief executive officer Yoav Keren.

"The support from this top tier financial institution will enable us to continue to drive our ambitious expansion plans as we remain acutely focused on broadening our reach and increasing our market share in the rapidly growing brand protection and online threat hunting industry.

"We continue to see strong demand for our solutions and this additional strengthening of our balance sheet will ultimately accelerate our operational and strategic progress."

At 1244 BST, shares in BrandShield Systems were up 0.29% at 17.1p.