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
GPS Industries, Inc.
