TORONTO, July 25, 2017 /CNW/ - Redknee Solutions
Inc. ("Redknee" or the "Company") (TSX: RKN) announces that it
has received shareholder approval for its previously announced
rights offering (the "Rights Offering"). The net proceeds of the
Rights Offering will be used to fund a restructuring of the
business in furtherance of the previously announced strategic plan
(the "Strategic Plan").
The Rights Offering was approved by 92.58% of the 55,727,138
votes cast by holders of the Company's Subordinate Voting Shares
present in person or represented by proxy at the special meeting of
shareholders held on July 25, 2017.
The Company has therefore satisfied its shareholder approval
requirement for the Rights Offering, and as such will commence with
the launch of the Rights Offering.
"We are very encouraged by the strong vote of confidence that
the shareholders have given us to proceed with our rights
offering," said Danielle Royston,
CEO of Redknee. "Backed by shareholder approval, we will now
turn towards proceeding with our Strategic Plan to build a platform
for long-term growth, simplified operations and sustained
profitability."
Pursuant to the Rights Offering, eligible shareholders as of the
close of business (Toronto time)
on August 1, 2017 (the "Record Date")
will receive one right ("Right") for each Subordinate Voting Share
held as of the Record Date. Each Right will entitle the holder
thereof to acquire one Subordinate Voting Share at a subscription
price of Cdn$0.63 (the "Subscription
Price"). The Subscription Price represents a 40.1% discount to
the simple average of the closing price of the Subordinate Voting
Shares on the Toronto Stock Exchange for the 20 trading days
immediately preceding the date hereof. The Rights Offering is
expected to expire on August 29, 2017
(the "Expiry Date"). Any Rights not exercised on or before the time
the Rights expire will be void and will have no value.
Further details on the Rights Offering, including eligibility
requirements for shareholders to participate and the procedures to
be followed by shareholders in order to subscribe for Rights, will
be included in a rights offering circular (the "Rights Offering
Circular") and rights offering notice (the "Rights Offering
Notice") which are expected to be filed with securities regulatory
authorities in each province and territory of Canada on July 26,
2017. A copy of the Rights Offering Circular and Rights
Offering Notice will be available on SEDAR at www.sedar.com.
The completion of the Rights Offering is conditional upon the
satisfaction of certain conditions, including the approval of the
Toronto Stock Exchange.
In addition, the Company expects to release its results for the
third quarter of 2017 on or about August
9, 2017. The Company estimates that revenue for the
quarter will be between US$31 million and
US$33 million. However, there can be no assurance that
such estimate will prove to be correct and actual revenue may vary
significantly from such estimate.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
securities in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
province, state or jurisdiction.
Forward-Looking Statements
Certain statements in this document may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used
in this document, such statements use such words as "may," "will,"
"expect," "continue," "believe," "plan," "intend," "would,"
"could," "should," "anticipate" and other similar terminology.
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. Such forward-looking statements include statements
respecting the Company's objectives; statements regarding financial
or other projections; completion of the Rights Offering; the
anticipated benefits of the Rights Offering; the net proceeds to be
available upon completion of the Rights Offering; the intended use
of proceeds from the Rights Offerings; our expectations regarding
the Strategic Plan and the restructuring; revenue for the quarter.
These statements reflect current assumptions and expectations
regarding future events and operating performance and speak only as
of the date of this document. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors
and assumptions that may cause the actual results, performance or
achievements to differ materially. Such factors include, but are
not limited to, assumptions respecting : the completion of the
Rights Offering; the anticipated benefits of the Strategic Plan,
including the restructuring; the necessary regulatory approvals
being obtained for the completion of the Rights Offering on terms
acceptable to Redknee; the estimated costs of the Rights Offering
and the net proceeds to be available upon completion of the Rights
Offering; the operating expenses of the Company for the 12 month
period following the Expiry Date; the amount of funds needed for
the restructuring; the ability of Redknee's products to perform as
expected; and no material adverse change in the affairs of Redknee.
Forward-looking information should not be read as a guarantee of
future performance or results, and will not necessarily be an
accurate indication of whether or not such results will be
achieved. The risks and uncertainties that may affect
forward-looking statements include, but are not limited to: the
failure of demand for Redknee's products to develop as anticipated,
the failure to obtain customer orders or meet customer
requirements, the inability of Redknee's products to perform as
expected, the inability of Redknee to achieve anticipated cost
savings in the time frames and to the extent anticipated,
unanticipated negative impacts on customer service or product
development as a result of costs savings implemented, a material
adverse change in the affairs of Redknee, Redknee's ability to
complete the Rights Offering; general economic conditions; foreign
currency risk, the Company's failure to realize the anticipated
benefits of the Rights Offering and the Strategic Plan, including
the restructuring; the actual costs incurred in the Rights
Offering, the actual amount of funds raised under the Rights
Offering; the actual operating expenses of the Company for the 12
month period following the Expiry Date, and the 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 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.
About Redknee
Redknee monetizes today's digital world for communications
service providers. Our market-leading portfolio of monetization and
subscriber management solutions includes real-time billing,
charging, policy and customer care modules and is available on
premise, cloud-based, or as Software-as-a-Service. With a central
focus on driving customer success, Redknee's products power growth
and innovation for operators globally. Established in 1999, Redknee
Solutions Inc. (TSX: RKN) can be found on the Toronto Stock
Exchange. For more information about Redknee, please go to
www.redknee.com.
SOURCE Redknee Solutions Inc.