PokerTek Secures $5 Million Loan

PokerTek, the company that manufactures electronic poker tables for casinos and heads-up tables for amusement only, has secured a $5 million loan to help grow the company this year.

The loan, of which a maximum of $4.1 million could be used within the year, depending on PokerTek’s accounts receivable and inventory, is being provided by Silicon Valley Bank. The money will be used as needed to “execute its growth strategy,” according to a company release.

“We are pleased to partner with Silicon Valley Bank,” said Mark Roberson, PokerTek’s chief financial officer. “We felt it was important to find a financial partner that understood our business and could offer a flexible, non-dilutive source of financing as we expand our footprint in the casino and amusement markets. Silicon Valley Bank is one of the premier commercial banks for emerging, growth, and mature companies in the technology industry. Accordingly, they understand the working capital needs of fast-growth companies like PokerTek, and this facility is a key financial building block for us.”

PokerTek, formed in 2003, develops, manufactures and delivers several automated poker table products to casinos, bars, and restaurants around the world. Earlier this year, it contracted with a factory in Asia to build its “World Series of Poker Heads-Up Challenge” two-player bar game. Before that, it signed a distribution agreement with a company located in Australia to delivery its PokerPro 10-player and heads-up systems to casinos worldwide.

In June, the company announced that a 12-table room would open at Atlantic City’s Trump Plaza, as well as in casinos all across Bulgaria. So far, automated PokerTek poker rooms have sprung up in more than 30 locations across the globe, many of them on cruise ships.

The company is publicly traded and opened at $4.36 this morning. This year, the stock price peaked at $6.30 in June.

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