VESYNC (02148) announced that its wholly-owned subsidiary Etekcity Corp...
VESYNC (02148) announced that its wholly-owned subsidiary Etekcity Corporation (Etekcity) and Hong Kong Shanghai Banking Corporation (HSBC) have entered into a qualified receivables discount agreement on June 19, 2024. According to this agreement, the bank agrees to provide Etekcity with non-recourse receivables discount services up to a qualified receivables discount balance of $60 million from the date of signing the receivables discount agreement, and Etekcity agrees to transfer outstanding receivables not exceeding $60 million in qualified receivables balance to the bank. Etekcity also agrees to submit outstanding qualified receivables notices and related sales invoice details not exceeding $60 million to the bank for approval and the bank will advance 70% of the amount on the receivables notices upon approval.
In accordance with the receivables discount agreement, Etekcity submitted its first and second receivables notices and corresponding sales invoice details to the bank on June 20, 2024, with amounts of $2.934 million and $25.0081 million, respectively. Both receivables notices have been approved by the bank. On July 22, 2024, Etekcity sent its third receivables notice and corresponding sales invoice details to the bank, with an amount of $32.0551 million, which was also approved by the bank.
The announcement stated that the receivables discount agreement and the third receivables notice were entered into by the company in the ordinary course of business, which is beneficial for all parties involved. The agreement helps to unlock the company's receivables assets, accelerate asset turnover, and broaden financing channels.