Redknee Solutions Announces $75 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwired - Feb. 24, 2014) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Redknee Solutions Inc. (TSX:RKN) ("Redknee" or the "Company") announced today that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P. and Canaccord Genuity Corp. and including CIBC World Markets Inc., RBC Capital Markets, TD Securities Inc., Cantor Fitzgerald Canada Corporation, Clarus Securities Inc. and Paradigm Capital Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, 12,820,520 common shares (the "Common Shares") of the Company at a price of $5.85 per Common Share (the "Offering Price") for aggregate gross proceeds to Redknee of $75,000,042 (the "Offering").

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,923,078 Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $11,250,006 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $86,250,048.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. The Offering is expected to close on or about March 13, 2014 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Redknee Solutions Inc.

Redknee is a leading global provider of innovative communication software products, solutions and services. Redknee's award-winning solutions enable service providers to monetize new services, business models and content and to deliver a comprehensive customer experience - through either SaaS or on-premise based solutions. Redknee's revenue and subscriber management platform provides innovative converged billing, charging, customer care, and payments solutions for voice, messaging and data services to over 200 service providers in over 90 countries. 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.

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 Redknee's 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 the statements regarding the Offering and the closing date thereof, the filing of the short form prospectus and the use of net proceeds from the Offering. These statements reflect current assumptions and expectations regarding future events and operating performance, including assumptions with respect to the receipt of required regulatory and stock exchange approvals and speak only as of the date of this document. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements, including, but not limited to, the risk of a material adverse change in the affairs of Redknee, a materially adverse development in financial markets or other occurrence which would permit the agreement between Redknee and the Underwriters (or any agreement superseding such agreement) to be terminated in accordance with its terms, 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.

Although the forward-looking statements contained in this document are based upon what Redknee believes are reasonable assumptions, they may prove to be incorrect, and Redknee cannot assure investors that our actual results will be consistent with these forward-looking statements. Redknee expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.