Identive Secures New Growth Capital

Identive Group, Inc. announced that it has entered into a $10 million secured loan agreement with Hercules Technology Growth Capital, Inc. On Oct. 30, 2012, Identive received an initial advance of $7.5 million, and has the opportunity to borrow an additional $12.5 million for a total of $20 million, subject to terms and conditions set forth in the agreement.

The initial drawdown of $7.5 million is in the form of a three-year promissory note that bears interest at a rate of the greater of the prime rate plus 7.75% or 11.00%. The company’s ability to borrow additional funds under the loan agreement is subject to its ongoing compliance with a number of customary financial and other covenants as described in the loan agreement.

“Our success in securing non-dilutive financing on market terms with a premier technology lender not only gives us an important cushion against business downturn, but enables us to fund working capital growth requirements,” David A. Wear, CFO of Identive commented. “Access to this additional liquidity allows us to manage our growth business needs more efficiently as we continue to invest in and build upon emerging opportunities in the secure identification market.”

Hercules Technology Growth Capital is a leading specialty finance company based in Palo Alto, CA, and is focused on providing senior secured loans to venture capital-backed companies in technology-related markets.