CALGARY, Alberta, Aug. 07, 2019 (GLOBE NEWSWIRE) -- Trakopolis IoT Corp. (TSXV: TRAK) ("Trakopolis" or the "Company") wishes to provide an update on certain provisions contained in the agreement with ESW Holdings, Inc. ("ESW") amending its US$3.0 million senior secured credit facility (the "Amending Agreement"), as previously announced on August 2, 2019.
The Amending Agreement contemplated that certain milestones must be achieved by Trakopolis. In particular, the Amending Agreement required the Company, by not later than August 7, 2019, to provide ESW with a financing plan that contemplates full repayment of the senior secured credit facility by not later than September 30, 2019 (subject to extension by ESW). That financing plan has now been provided to ESW. It is also a milestone to the Amending Agreement that the Company pursue an equity raise in the aggregate amount of not less than CAD$3.0 million (the "Financing") and make a public announcement with respect to such Financing by no later than August 7, 2019. The Board of Directors has resolved to move forward with the Financing and has engaged external legal and financial advisors to assist the Company in that regard. It is currently contemplated that a rights offering to existing shareholders will form one component of the Financing potentially combined with a private placement to existing shareholders and new investors. Other financing options to augment the Financing are also being considered.
The Company anticipates making a further disclosure with respect to the terms of the Financing once required stock exchange approvals have been received. In addition, Trakopolis wishes to advise that the work of the Special Committee noted in our August 2nd press release is on-going. Other than noted above, Trakopolis does not intend to comment further regarding the Financing or the Special Committee process unless a specific transaction is approved by the Board of Directors of the Company.
About Trakopolis
Trakopolis is a Software-as-a-Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers. The Company’s asset management platform works across a variety of networks and devices. Trakopolis has a diversified revenue stream from many verticals including oil and gas, forestry, transportation, construction, rentals, urban services, mining, government and others.
For further information please contact:
Brent Moore, President and Chief Executive Officer
Trakopolis IoT Corp.
Telephone: (403) 450-7854
Email: bmoore@trakopolis.com
Forward-looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding the form and amount of the Financing. These forward-looking statements are dependent on a number of assumptions and risk factors, including Trakopolis' ability to attract sufficient interest in the Financing to satisfy the conditions of the Amending Agreement and Trakopolis' receiving required approval from the TSX Venture Exchange. A failure to comply with the obligations in the Amending Agreement could result in a default which, if not cured or waived, could result in an acceleration of the credit facility's repayment. If repayment of the credit facility were to be accelerated, there can be no assurance that Trakopolis' assets would be sufficient to repay in full that indebtedness.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected effects on Trakopolis. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation, the Company assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.