Rail Vision (NASDAQ:RVSN) stock is slidling lower on Wednesday after the railway detection systems company announced a new $6 million credit facility.
According to a press release from Rail Vision, this new credit facility comes alongside another $3 million in funding. The credit facility has a term of 10 months and accrues interest at 8% per year. The additional loans come in four $750,000 installments.
Rail Vision notes that the first payment from the credit facility, coming in at $1.5 million, was drawn with the completion of the agreement. The company says that this agreement will allow it to expand its market reach, drive innovation and deliver more value to shareholders.
More Terms of the Credit Facility
As part of the credit facility agreement, Rail Vision granted the lender a warrant to acquire up to $7.5 million shares of RVSN stock. The warrant has an initial exercise price of $3.10 per share.
In order to secure the credit facility, Rail Vision required the resignation of board members Shmuel Donnerstein, Inbal Kreiss and Keren Aslan. That has Amitay Weiss and Hila Kiron-Revach joining the board until the next general meeting of shareholders.
RVSN stock is down 9.7% as of Wednesday morning.
Investors can find more of the latest stock market stories below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
