Gatekeeper Enters into $3M Revolving Credit Facility with TD Bank and Provides Update on Growth

Abbotsford, BC - TheNewswire - July 23, 2020 - Gatekeeper Systems Inc. ('Gatekeeper' or the 'Company') (TSXV:GSI) (OTC:GKPRF) (FSE:1GK) a leading provider of intelligent video solutions for public transport and smart cities, is pleased to announce it has entered into a revolving credit facility (the "Credit Facility") with Toronto Dominion Bank pursuant to which Gatekeeper will be entitled to borrow up to CAD $3 million to support the Company's growth.

Advances made under the Credit Facility will bear interest at a rate of prime plus 0.85% per annum and United States Base Rate (USBR) loans at a rate of prime plus 0.75%. The Credit Facility is intended to be used for general working capital purposes.

The Company recently filed its financial results for the nine-month period ending May 31, 2020, reporting nine-month revenues of $12.6 million, no long-term debt, and working capital of $7.7 million. Since May 31, 2020, the Company's business has continued to grow, and outstanding receivables now stand at approximately $6.5 million. The Company expects this growth to continue and will utilize the Credit Facility as required to fund the continued growth.

Doug Dyment, President and CEO commented, "Our current accounts receivable balance is the highest in the Company's history and is already approaching the level of what was full-year revenue just a couple of years ago. We accomplished this growth without any dilutive financings. I am delighted that a top tier bank, after completing their careful due diligence, has provided us with a credit facility on very favorable terms during this period of heightened global economic uncertainty. It speaks to the solid foundation and promising growth outlook of our company."

The Credit Facility is secured by a General Security Agreement (GSA) for Gatekeeper Systems Inc., representing a first charge on the Company's present and after acquired personal property, and a Uniform Commercial Code Security Agreement ("UCC") for Gatekeeper Systems USA Inc., among other customary guarantees, and is repayable upon demand. The initial drawdown under the Credit Facility is subject to satisfaction or waiver of certain conditions precedent customary for a financing of this type.

About Gatekeeper Systems Inc.

Gatekeeper is a leading provider of intelligent video solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems for Smart City initiatives. The Company's Platform-as-a-Service (PaaS) business model is designed to connect moving vehicles in the era of Internet of Things (IOT).

Contact Information

Douglas Dyment

President & CEO

(604) 864-6187

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Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management's discussion and analysis for the quarter ended May 31, 2020. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management's current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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