November 28, 2008 — (WEB HOST INDUSTRY REVIEW) — End-to-end data protection solutions provider Overland Storage (www.overlandstorage.com) has announced a financing transaction with Marquette Commercial Finance (www.marqcfi.com), which could finance up to $9 million of the company’s domestic accounts receivable, providing the company with accelerated liquidity.
According to Overland Storage’s Thursday announcement, the term of the agreement is two years with possible annual renewals thereafter. This funding will specifically to provide the company with accelerated liquidity, increasing the availability of cash to the business, which provides flexibility.
“This financing agreement with Marquette will allow us to continue our recovery and execute our strategy,” Overland Storage president and chief executive officer Vern LoForti said in a statement. “I remain encouraged by the strength and commitment of the Overland team, and by the support of our channel partners who continue to stand by us. We are focused on harvesting our recent investment in the Snap Server business and in delivering new solutions that can leverage the variety of platforms represented by the Overland family of data protection appliances.”
In October, Overland Storage reported a net loss of $6.9 million for the fiscal 2009 first quarter, ending at the end of September, compared with a net loss of $4.5 million for the same period a year earlier. The quarter, however, was generally a period of expansion, having integrated Adaptec?s Snap Server NAS business that it bought at the end of June, which it has been restructuring until September, when the integration of both the Snap personnel and its business systems into Overland was mostly complete.
“We are grateful to the team at FTI Capital Advisors, LLC who assisted us in our search and, in spite of a very challenging financing environment, worked tirelessly to provide us with a number of options, including Marquette.
