CALGARY, Alberta, Aug. 02, 2019 (GLOBE NEWSWIRE) -- Trakopolis IoT Corp. (TRAK.V) ("Trakopolis" or the "Company") announces that it has entered into an agreement (the “Amending Agreement”) with ESW Holdings, Inc. (“ESW”), its senior secured lender, in respect of its US$3.0 million secured credit facility (the “Credit Facility”). Among other things, the Amending Agreement updates the Company’s reporting obligations and adds a requirement for Trakopolis to report on its ongoing strategic process which involves the identification of capital market alternatives available to it including financing transactions and potential strategic combinations. The strategic review is being conducted by a Special Committee of the Board of Directors with the assistance of external legal and financial advisors. The Amending Agreement requires the Company to provide ESW with its repayment plan for the Credit Facility, which must be satisfactory to ESW, and resets downward the liquidity covenants. The Amending Agreement specifies additional events of default and can be terminated at the election of ESW in certain circumstances. In addition, the Company is required to raise approximately US$80,000 in additional capital. It is expected that much of this additional capital will come from the Company’s management team and certain commitments have been received in this regard.
Trakopolis does not intend to comment further regarding the strategic review process unless a specific transaction or other alternative is approved by the Board of Directors of the Company.
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
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 reduction of the liquidity requirement under the Credit Facility, the expectation of management participation in a future capital raise and the completion of certain milestones by Trakopolis. The statements are dependent on a number of assumptions and risk factors, including Trakopolis' ability to to execute the milestones successfully within the required timelines, to be successful in raising additional capital and in its discussions with third parties and on the implementation of any financing or other strategic alternatives. A default under the Amending Agreement 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.