MARKHAM – Services and equipment supplier Cygnal Technologies Corporation today announced that David J. Horsley, senior vice-president and CFO, has resigned his position effective October 14 to pursue a similar role at another public company.
The release did not name the company.
Michael Conway will now begin working with Cygnal in a transitional role and will assume the title of CFO on an interim basis beginning October 14. Conway, who has served as a Cygnal director and the chair of its audit committee since June 2004, will resign his position on that committee but will remain a member of the board of directors.
Conway is a chartered accountant with over 25 years of experience in financial operations and management, says the Cygnal release. Most recently he was senior vice-president and CFO of Psion Teklogix Inc., a global provider of solutions for mobile computing and wireless data collection. His previous roles have included vice-president finance with Call-Net Enterprises/Sprint Canada, vice-president and corporate controller with BCE Inc.
"We thank David for his contributions and wish him continued success," said Gerry Hurlow, Chairman and CEO of Cygnal. "David oversaw a number of key financings and acquisitions, as well as the legal reorganization of several acquired entities into a unified Cygnal Network Solutions platform and the implementation of a company-wide ERP system."
The company also announced the completion of two debt financings. The net proceeds from the financings will be used to pay out Cygnal’s current credit facilities with The Toronto-Dominion Bank and for general working capital purposes.
The Corporation entered into financing arrangement with Laurus Master Fund Ltd. for up to US$8.5 million secured by the assets of the Corporation’s Network Solutions business. The maximum amount available to the Corporation at any one time is based on a borrowing base calculation determined by Laurus.
The security agreement provides for the issuance of secured notes bearing interest at 0.5% above prime, convertible into common shares of the corporation and the issuance of warrants to purchase up to 1,971,819 common shares of the corporation. Laurus also provided an additional short term loan of approximately US$700,000.
In addition, White Radio L.P., which operates Cygnal’s Communications Services business, entered into a credit facility with LaSalle Business Credit, a division of ABN AMRO Bank, N.V., Canada Branch, consisting of a revolving loan up to a maximum of C$15 million maturing in three years and a two-year term loan in the amount of C$2 million. The maximum amount available to White Radio at any one time is based on a borrowing base calculation determined by LaSalle. The LaSalle facility is secured by the assets of the corporation’s Communications Services business and the corporation’s interest in White Radio L.P.
"We appreciate the flexibility TD Bank has shown in recent quarters, but we feel these new facilities provide Cygnal with a more appropriate financing arrangement " said Hurlow.
