TORONTO, Sept. 30, 2016 /CNW/ - Redknee Solutions Inc. ("Redknee" or the "Company") (TSX: RKN), a leading provider of real-time monetization and subscriber management software, today announced that it has entered into a waiver and amendment to its credit agreement with its lenders. Pursuant to this waiver and amendment, the lenders have waived certain financial covenant requirements under the credit agreement for the twelve-month period ended September 30, 2016, subject to compliance by Redknee with certain conditions and reporting relating to its previously announced review of strategic and financing alternatives.
If the Company is not able to comply with these conditions, then the amount of loans and borrowing outstanding will become due and payable to the lenders on demand. As at September 30, 2016, $52.8 million was outstanding under the facilities established by the credit agreement.
About Redknee Solutions Inc.
Redknee monetizes today's digital world. We provide a complete portfolio of mission-critical monetization and subscriber management solutions and services that allow communications service providers, utility companies, auto makers and enterprise businesses of all types to charge for things in new and innovative ways. Redknee's real-time billing, charging, policy and customer care offerings provide the agility and scalability to drive a unique user experience, increase profitability and support any new product or business model. Available on premise, cloud-based, or as a Software-as-a-Service, Redknee's low-risk, flexible solutions power more than 250 businesses across the globe. Established in 1999, Redknee Solutions Inc. (TSX: RKN) is the parent of the wholly-owned operating subsidiary Redknee Inc. and its various subsidiaries. References to Redknee refer to the combined operations of those entities. For more information about Redknee and its solutions, please go to www.redknee.com.
Certain statements in this document may constitute "forward-looking" statements regarding Redknee and its business, which may include, but are not limited to compliance by Redknee with the conditions under its credit agreement, as amended, and any strategic alternatives potentially available to the Company. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Persons reading this news release are cautioned that such information may not be appropriate for other purposes.
Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future events or results, and will not necessarily be accurate indications of whether or not such events or results will be achieved. Actual events or results could differ materially from those contemplated in forward-looking statements as a result of risks and uncertainties relating to Redknee's inability to achieve operating results and manage its financial condition such that it is able to comply with the conditions and financial covenants under its credit agreement, as amended; the unavailability of a waiver from the lenders in respect of any non-compliance by Redknee with the conditions and financial covenants under its credit agreement, as amended; its ability to identify any strategic or financing alternatives that could increase shareholder value, including: the risk that the strategic review could result in additional demands on Redknee's resources, disruption of its ongoing business and diversion of management's attention from other business concerns; Redknee's inability to complete a transaction; disruptions resulting from any transaction, making it more difficult to maintain business relationships; and other factors discussed under the "Risk Factors" section of Redknee's most recently filed AIF which is available on SEDAR at www.sedar.com and on Redknee's web-site at www.redknee.com. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual events or results to differ materially from those in the forward-looking statements. Redknee does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
SOURCE Redknee Solutions Inc.
For further information: Redknee Solutions: David Charron, Chief Financial Officer, [email protected], +1 (905) 625-2943; Investor Relations: Lawrence Chamberlain, NATIONAL | Equicom, T: (416) 848-1457, [email protected]