DENVER, Aug. 30, 2017 /PRNewswire/ - (TSX: IMP)
(ITMSF:BB) – On February 5,
2016 Intermap Technologies Corporation ("Intermap" or the
"Company") announced that it had entered into definitive agreements
pertaining to a previously announced letter of award (see
June 22, 2015, September 29, 2015 and December 31, 2015 press releases) for the
creation, operation and maintenance of a national spatial data
infrastructure ("SDI") program (the "Project"), valued at
US$175 million. These arrangements
contemplated that the Company would provide products and services
pursuant to an engineering, procurement and construction agreement
("EPC Agreement") to a client, Air-Map SARL ("Air-MAP"), who had in
turn entered into an agreement with the Ministry of Planning of the
Democratic Republic of Congo
("DRC") to complete the Project for the DRC. In the Company's prior
press releases (see February 5, 2016
and July 5, 2016) the Company advised
that the commencement of its EPC Agreement was subject to the
finalization of the Project's financing facility which was the
obligation of its client (Air-Map) and, in July 2016, the Air-Map advised that the financing
process was in its final phase with a leading multilateral
financial institution.
To date, the Company has not received notice that Air-Map has
secured this financing, nor has the Company received the initial
payment contemplated by the EPC Agreement (US$12 million), payment of which is the trigger
for commencement of the EPC Agreement. Additionally, since
August 2016 the Company has not been
engaged to provide any due diligence information regarding the
Company and its Orion Platform to assist Air-Map in securing the
Project financing, which would, in the Company's experience, be
typical for project-related financings such as this. Further, the
Company has not received any notice of termination of the EPC
Agreement, the EPC Agreement has not terminated in accordance with
its terms and the circumstances for which the EPC Agreement may be
terminated by the Company are limited.
Since the original submission of the bid by Air-Map in
May 2015 and the letter of award by
the Ministry of Planning of the DRC in June
2015, the country risk rating and business climate rating
for the DRC have significantly deteriorated. The DRC is
currently in a political crisis which has led to protests and
increased violence in the region and these circumstances raise
significant concerns relating to security and safety for those
operating in country.
Based on the foregoing, Management of the Company now believes
that due to the passage of time and in light of the increasing
political crisis in DRC and escalating violence in region, it is
highly unlikely that access to credit markets will be available for
this Project to permit Air-Map to satisfy its financing condition
such that the EPC Agreement can proceed. Further, the current
political and security instability introduce significant risk to
employees and Company assets such that the Company would be
unlikely to proceed with the Project at this time if financing was
available.
The Company has not previously recognized any revenue in its
financial statements with respect to the EPC Agreement.
The Company is focused on executing its new strategic direction,
completing the comprehensive upgrade of its radar system, executing
on two previously announced mapping services contracts, and adding
customers in its core risk management business, where it has seen
increased demand for risk management software and services related
to flood underwriting.
About Intermap Technologies
Headquartered in Denver,
Colorado, Intermap (www.intermap.com) is an industry leader
in geospatial intelligence solutions. These geospatial solutions
are used in a wide range of applications including, but not limited
to, location-based information, risk assessment, geographic
information systems, engineering, utilities, global positioning
systems, oil and gas, renewable energy, hydrology, environmental
planning, land management, wireless communications, transportation,
advertising, and 3D visualization. Intermap generates revenue from
three primary business activities, comprised of i) data acquisition
and collection, using proprietary, multi-frequency, radar sensor
technologies, ii) value-added data products and services, which
leverage the Company's proprietary NEXTMap® database, together with
proprietary software and fusion technologies, and iii) commercial
applications and solutions, including a webstore and software sales
targeting selected industry verticals that rely on accurate high
resolution elevation data. The Company is a world leader in data
fusion, analytics, and orthorectification, and has decades of
experience aggregating data derived from a number of different
sensor technologies and data sources. For more information please
visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes
forward-looking statements, including Management's assessment of
the likelihood that Air-Map will satisfy the financing condition
for the Project and that the Project will proceed. The words
"anticipate", "expect", "project", "estimate", "forecast" and
similar expressions are intended to identify such forward-looking
statements. Although Intermap believes that these statements are
based on information and assumptions which are current, reasonable
and complete, these statements are necessarily subject to a variety
of known and unknown risks and uncertainties. You can find a
discussion of such risks and uncertainties in our Annual
Information Form and other securities filings. While the Company
makes these forward-looking statements in good faith, should one or
more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
significantly from those expected. Accordingly, no assurances can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that the Company will derive therefrom. In particular, in
respect of the Project financing, this obligation to secure such
financing rests solely with Air-Map and the Company has no
responsibility for securing such financing or satisfying any other
conditions precedent contained in agreements between Air-Map and
the DRC. All subsequent forward-looking statements, whether written
or oral, attributable to Intermap or persons acting on its behalf
are expressly qualified in their entirety by these cautionary
statements. The forward-looking statements contained in this news
release are made as at the date of this news release and the
Company does not undertake any obligation to update publicly or to
revise any of the forward-looking statements made herein, whether
as a result of new information, future events or otherwise, except
as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation