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.
Forward-Looking Statements
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.