Questor Technology Announces 2018 Capital Budget and Debt Financing

Questor Technology (TSXV:QST) has announced its 2018 capital budget of $10 million, which will primarily be used to expand its operations in the US.

As quoted in the press release:

The Company also announces that it has secured two new debt facilities with HSBC.

Questor’ 2018 capital budget of $10 million is focused on the continued expansion of the rental fleet, particularily in its core market of Colorado. The Company expects approximately 90% of the budget will be focused on additional proprietary rental emission control equipment. The balance of the budget will be dedicated to support equipment and maintenance capital. Questor expects the majority of the new units will be fabricated and made available for use in the first half of 2018.

The State of Colorado has taken a lead role in regulating quality, high-performance emission control equipment. Questor’s patented and proprietary technology has evolved to address Colorado’s unique and highly demanding requirements. Questor has been focused on providing this high-performance combustion equipment for a variety of clients on a rental basis. Demand for Questor’s solutions continues to grow and has resulted in the Company achieving a record level of utilization for its existing rental fleet.

Questor intends to finance the $10.0 million of capital expenditures detailed above with cash on hand, cash flow from operations and, if necessary, from the new credit facilities. The new facilities consist of a $5 million revolving capital loan facility and a $1 million operating loan facility. This 2018 capital budget will allow for continued preservation of the Company’s balance sheet.

Click here to read the full press release.