Optex Systems Holdings, Inc., a leading manufacturer of optical sighting systems and assemblies, primarily for Department of Defense applications, recently announced that the company has entered into a commitment letter with Peninsula Bank Business Funding. Under the terms of the agreement, Peninsula Bank Business Funding will provide a one-year, senior-secured $2 million asset-based line of credit to Optex Systems Holdings, Inc.

Upon execution of definitive documents, Peninsula Bank Business Funding will provide advances to Optex Systems Holdings at varying advance rates based upon eligible accounts receivable. Optex Systems plans to use the funds to finance its working capital requirements and future growth opportunities.

Danny Schoening, chief operating officer of Optex Systems Holdings, Inc., stated, “This proposed new facility strengthens the Company’s balance sheet and provides additional working capital to accommodate future growth.” Mr. Schoening continued, “We believe we have successfully restructured the company’s operations over the past year, as demonstrated by improved operating cash flow, and we are now poised to build upon this stable foundation going forward.”