VANCOUVER, March 20, 2020 /CNW/ - LITE ACCESS TECHNOLOGIES INC. (the "Company") (TSX VENTURE: LTE) (OTC PINK: LTCCF) today publishes a letter to shareholders from Carlo Shimoon, President and CEO, providing an operational update and summary of measures being taken by the Company to address the current COVID-19 concerns:
I felt it was important, particularly at this moment in time, as we face the global health pandemic of COVID-19 (coronavirus) to apprise our shareholders of the current state of Lite Access and the plan forward. Our mindset is protecting the health and safety of our staff, and those around us, and to consistently build the Company.
Over the past several weeks, while the world works to combat this virus and manage the spread, there are challenges common to many companies around the globe. Right now, it is business as usual, as best we can, while adhering to government evolving guidelines and restrictions – such as self-isolation and travel. We are taking all the measures necessary to ensure the health and safety of all staff. To-date, Lite Access has not received any notification of closure at job sites. In light of the uncertainty and unpredictable geographic, social and economic impacts of COVID-19, we believe it is reasonable to expect that actions taken to reduce the virus' spread will affect our targeted deployment rates.
In 2019, efficient operations and capital discipline remained our core focus as we worked diligently to secure a contract in the UK with proper commercial terms to position our Company for the next phase of growth. Our goal was clear and we, in fact, were able to achieve the signing of not one, but two major contracts as a construction partner for CityFibre valued at approximately $33 million.
This year, our team is driven to deliver a considerable portion of our $33 million UK backlog to be completed over the next 2 years to generate revenue growth and continue building our reputation as a trusted supplier to telecoms, ISPs, governments and councils. Year-to-date, there are other considerations to keep in mind related to our cash position and debt. Firstly, we were able to successfully close an additional revolving credit facility with Royal Bank, not to exceed $1.9 million. No draws have been made to-date and we plan to draw on these finances, only if required, for growth and working capital needs. Secondly, just last month, we closed a non-brokered private placement financing for gross proceeds totaling $3.5 million for targeted acquisitions and working capital. We are well-positioned with a robust balance sheet and well-capitalized to execute our plan and advance our project despite the unknown effects of COVID-19 as it relates to our business. Rest assured, we are evaluating the situation daily and adhere to our core tenets of efficient operations and capital discipline that I have maintained since the beginning of my tenure.
As many of you are aware, the UK government's 2020 budget reaffirmed its commitment to invest a total of £5 Billion to roll out full-fibre broadband across the country.1 The UK government's pledge to accelerate the delivery of gigabit-capable broadband presents a massive and sustained opportunity to network builders and engineers for new contracts, job creation and regional expansion.2
We remain bullish on the demand for digital infrastructure given the insatiable demand for broadband speeds to bridge the digital divide and support 5G wireless. This year, more than ever, I look forward to Lite Access hitting key milestones and transitioning to a commercially successful, sustainable business. Looking back on the decision you made to invest with us, I trust you share my conviction and belief that our best days and years are ahead of us. As has been our practice, we will sustain best business and safety practices while operating the Company at the highest and best standards.
To those shareholders who share my outlook on the Company, I believe your patience will be rewarded.
Thank-you for your support,
President & CEO
Lite Access Technologies Inc.
1RapidTVNews www.rapidtvnews.com, online https://www.rapidtvnews.com/2020031258197/uk-government-confirms-5bn-full-fibre-broadband-plan.html#axzz6HAvPf6Ud
2ConstructionNews www.constructionnews.co.uk, online https://www.constructionnews.co.uk/tech/full-fibre-rollout-is-a-gauntlet-thrown-down-to-uk-contractors-02-03-2020/
About Lite Access
Lite Access Technologies Inc. is a world leader in the use of innovative and proven micro/narrow trenching technologies, alternate methods of deployment and specialist products which transform the cost the network deployment for telecommunications operators.
As part of its suite of services Lite Access provides clients with integrated solutions or select components for the design and implementation of fibre optic networks. Lite Access' products have been deployed in many high-profile communication networks including Olympic facilities, military and government, numerous communities throughout the United Kingdom, the USA and Canada as well as global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.
Lite Access' installation technology and proprietary products extend a network provider's ability to deliver true broadband connectivity directly to end-users, such as homes, businesses, government and educational institutions, and emergency response facilities. Lite Access remains flexible and innovative in its commitment to provide global clients and partners with the most cost effective and proven fibre connectivity solutions available.
Forward Looking Information
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Lite Access uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Lite Access in light of its experience and its perception of historical trends, current conditions and expected future developments. However, whether actual results and developments will conform to Lite Access' expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Lite Access' actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. Such factors include, among other things: the projected value of the contract award from CityFibre, and risks and uncertainties described in Lite Access's most recent Management Discussion & Analysis (MD&A) for the period ended December 31, 2019 which can be accessed at www.sedar.com. The "forward-looking statements" contained herein speak only as of the date of this press release and, unless required by applicable law, Lite Access undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
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.
SOURCE Lite Access Technologies Inc
For further information: Lite Access Technologies Inc., Carlo Shimoon, CEO, Phone: 1-604-247-4704, Unit 5 - 20678 Duncan Way, Langley, BC V3A 7A3, www.liteaccess.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5