Lite Access Closes Expanded Credit Facility with Royal Bank of Canada

LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE) (OTC PINK: LTCCF) is pleased to announce it has closed an expanded credit facility with the Royal Bank of Canada (RBC), in cooperation with Export Development Canada (EDC).

Following a review of the Company's current financial position, in addition to the Company's  current  undrawn $500,000 revolving demand credit facility at RBC's prime plus 2.60%, RBC has approved an additional $1,650 ,000 revolving credit facility at RBC's prime plus 0.66%, with the first and second credit facilities not to exceed $1.9 million . The first facility is repayable on demand and the second facility is repayable on June 30, 2021 . As a condition to RBC granting the credit facility, the Company entered into a corporate guarantee, a general security agreement granting a first priority general security interest in all personal property of the Company, and  a cash collateral agreement in the amount of $200,000 .  No draws have been made to-date and Lite Access plans to draw on these funds, only if required, for growth and working capital needs.

"Expansion of our credit facility is an important next step for Lite Access and our shareholders," said Carlo Shimon , President & CEO of Lite Access.  "The commitment by RBC reflects the recognition of the Lowestoft fibre-to-the premises (FTTP) installation contract valued at approximately $20 million with CityFibre (see press release dated October 23, 2019 ), and the risk profile of our business.  As we have secured an additional FTTP installation contract valued at approximately $13 million with CityFibre (see press release dated January 22, 2020 ), we expect continued confidence and support by our lenders in further credit facility increases for this contract and future contracts in additional cities, if performance expectations are met. Instead of relying on equity-based capital or other more expensive debt options to fund our growth, this facility offers non-dilutive capital with a favourable interest rate and provides us with the operating flexibility to support our growth as we execute the CityFibre contracts and generate positive cash flow as planned."

Mr. Shimoon explained, "Now, we have more options for accessing additional capital.  As we begin the next chapter for Lite Access, leveraging these types of facilities will allow us to grow further and faster while protecting the interests of the Company and our valued shareholders."

About Lite Access

Lite Access Technologies Inc. is a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.

As part of its suite of services Lite Access provides clients with integrated solutions or select components for the design and implementation of fibre optic networks.  Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout the United Kingdom , the USA and Canada as well as global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.

Lite Access' installation technology and proprietary products extend a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, businesses, government and educational institutions, and emergency response facilities. Lite Access remains flexible and innovative in its commitment to provide global clients and partners with the most cost effective and proven fibre connectivity solutions available.