CLEARWATER, Fla., May 18, 2011 /PRNewswire/ -- ValCom, Inc. (VLCO.PK) announced today that it has signed a term sheet with Singapore based hedge fund, Solomed PTE Ltd. that provides a line of credit to ValCom.
ValCom plans to close on the financing this week, which will provide an initial line of credit of $1 million with an option to secure an additional $2 million. The initial line of credit will be used for strategic acquisitions, a buy-back of ValCom stock, and the funding of additional operations that will allow ValCom to drive additional sales and revenue to the company. The $1 million interest-bearing line of credit will be held in escrow where ValCom can draw down the funds as needed. The additional $2 million line will be available to the company based on ValCom's achieving benchmarks established in the company's business plan.
Vince Vellardita, President and CEO of ValCom, stated "There's a lot of buzz happening about ValCom on 'The Street' and in the entertainment industry. The recent valuation of ValCom's library has triggered interest from major studios and broadcasters to carry our content. We've also seen our My Family TV subsidiary become profitable, which will allow us to expand the sales and marketing effort for ValCom's library. This financing will allow ValCom to continue our expansion, add management to secure the company's growth, and buy back stock that has been undervalued in the marketplace."
ValCom recently announced the valuation of its content library by DOS Broadcast and Appraisal Services where the combined value of ValCom's television, film and audio content exceeds $120 million. ValCom has obtained commitments to license this content and will also develop proprietary video and audio products for the domestic and international marketplaceAbout ValCom, Inc.