Point.360 Announces New Financing
BURBANK, Calif., Jan. 14, 2011 /PRNewswire/ -- Point.360 (Nasdaq: PTSX), a leading provider of integrated media management services, today announced that it had entered into a financing agreement with Crestmark Bank which provides up to $1 million of credit based on eligible accounts receivable. Amounts available under agreement are expected to increase at the discretion of Crestmark to a maximum of $3 million. The agreement provides that (i) amounts advanced are due upon demand and (ii) interest is calculated at 2% over prime rate plus a monthly maintenance fee of 0.6% of the amount outstanding under the agreement. Amounts due under the agreement are secured by all of the Company's assets except for real estate security mortgage loans.
Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "Proceeds from the new loan were used to pay amounts owed under the Company's previous revolving debt and term loans and for working capital. Increased availability under the arrangement will provide additional financing flexibility in the future."
Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With locations in greater Los Angeles, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide, serving studios, independent producers, corporations, non-profit organizations and governmental and creative agencies. Point.360 provides the services necessary to edit, master, reformat and archive clients' audio and video content, including television programming, feature films and movie trailers. Point.360's interconnected facilities provide service coverage to all major U.S. media centers. The Company also rents and sells DVDs and video games directly to consumers through its Movie>Q retail stores. See www.Point360.com and www.MovieQ.com.Forward-looking Statements Certain statements in Point.360 press releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding potential availability of additional financing. Please also refer to the risk factors described in the Company's SEC filings, including its annual reports on Form 10-K. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from those expected or anticipated in the forward-looking statements. The Company has no responsibility to update forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release. SOURCE Point.360
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