By Iain Scott, ITWeb group consulting editor
Johannesburg, 26 Jun 2003
FrontRange`s US subsidiary has secured a $6 million revolving line of credit from Silicon Valley Bank, even though it already has significant cash resources.
JSE-listed FrontRange`s balance sheet at the end of December showed that the group was holding cash of R122.9 million.
However, it says that while it possesses significant cash reserves, the line of credit provides additional working capital to support its growth and overall business strategy.
FrontRange recently became the 100% owner of the US subsidiary, FrontRange Solutions, after buying back the 4.8% stake held by minority shareholders.
The cost of the stake was $1.1 million.
The FrontRange share was untraded at 150c this morning.
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