VANCOUVER, British Columbia, May 9 /PRNewswire/ --
GPS Industries, Inc. (GPSI) (OTC Bulletin Board: GPSN), the only provider of Wi-Fi powered, advertising enhanced GPS systems for golf facilities, resorts and residential communities, announces that it has increased the borrowing capacity under its Loan Agreement with Silicon Valley Bank (SVB).
On May 2, 2008, GPSI and SVB entered into an amendment to the existing Loan Agreement which makes available advances of up to US$6.5 million, an increase of US$3.5 million from the current loan arrangement. In addition, SVB granted forbearance relating to the current default on the Loan Agreement due to the death of Douglas Wood until July 31, 2008. Discussions continue between SVB and Douglas Wood's estate as to resolving the current default. The increased advances of up to US$3.5 million available to GPSI are guaranteed by Great White Shark Enterprises LLC, (GWSE), a major shareholder. The increase is initially limited to US$2.0 million with the ability to increase to US$3.5 million with additional security pledged by GWSE. Bart Collins, the President of GWSE, is a member of the board of directors of GPSI.
As consideration for GWSE, the GPSI and GWSE have entered a Facility Fee Agreement whereby the Company agrees to reimburse fees and the effective cost of money incurred by GWSE in providing the guarantee. In addition, GPSI has agreed to grant a security interest in all the assets of GPSI to each of the Loan Agreement guarantors on a pari passu basis.
ABOUT GPS INDUSTRIES, INC.
GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi multimedia solutions to enable managers of golf facilities, resorts, and residential communities to improve operational efficiencies and generate new revenue streams. The Company's Inforemer(R) Management Solutions product line provides integrated software applications and high-resolution cart mounted display panels that vividly illustrate each hole, providing precise distance measurement information, strategic playing tips and targeted advertising messages to the golfer while enabling the course with state-of-the-art management capabilities such as cart tracking, food and beverage service, and tournament sponsorships. The patented system is seamlessly connected via a high-speed Wi-Fi network that enables the entire facility as a wireless hot spot. With the acquisition of UpLink in January 2008, GPSI now also offers the Inova Management Solution product line with the exclusive patented IQLink car control and monitoring capabilities. As a result of the UpLink acquisition, GPSI now has an installed base of over 320 active course installations worldwide. For additional information, please visit http://www.gpsindustries.com.
Forward-Looking Statements
Some statements contained in this release may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, the company's ability to generate revenues and other factors as described in the Company's literature and filings with the Securities and Exchange Commission.
Web site: http://www.gpsindustries.com
Joe Miller, Chief Financial Officer of GPS Industries, Inc., +1-604-576-7442, Joe.miller@gpsindustries.com
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