- No Standby Commitment Necessary Given
Success of Offering -
TORONTO, Sept. 1, 2017 /CNW/ - Redknee Solutions
Inc. ("Redknee" or the "Company") (TSX: RKN) would like to
provide an update on its previously announced rights offering to
holders of its subordinate voting shares (the "Rights Offering").
The Rights Offering expired on August 29,
2017 and is scheduled to close on September 6, 2017.
The Rights Offering was over-subscribed prior to ESW Capital,
LLC ("ESW") exercising its additional rights and as such Wave
Systems Corp. was not required to fulfill its obligations under the
standby purchase agreement. On the closing of the Rights Offering,
an aggregate of 101,622,337 subordinate voting shares will be
issued under the basic subscription privilege and a further
6,878,479 subordinate voting shares will be issued pursuant to the
additional subscription privilege. As a result, a total of
108,519,936 subordinate voting shares will be issued upon the
closing of the Rights Offering for aggregate proceeds of
approximately Cdn$68 million. 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").
"We are very pleased with the success of the Rights Offering,
and sincerely thank our shareholders for their continued support,"
said Danielle Royston, CEO of
Redknee. "The positive response demonstrates a vote of
confidence in our ability to execute on our Strategic Plan to build
a platform for long-term growth, simplified operations and
sustained profitability."
Prior to the Rights Offering, ESW and its affiliates
beneficially owned and controlled approximately 13% of the issued
and outstanding subordinate voting shares on a non-diluted basis,
and 39% on a partially diluted basis. Following the Rights
Offering, ESW and its affiliates beneficially own and control
approximately 13% of the issued and outstanding subordinate voting
shares on a non-diluted basis, and 29% on a partially diluted
basis.
ESW has until the close of business on September 6, 2017 to advise Redknee whether it
intends to exercise its previously announced subsequent issuance
right pursuant to which it is entitled to acquire approximately
44.6 million additional subordinate voting shares at a price of
$0.63 per share.
A further press release will be issued upon closing of the
Rights Offering.
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.