Non-Dilutive Financing Will Help Fuel Growth
TORONTO, Jan. 8, 2013 /CNW/ - Redline Communications (www.rdlcom.com) Group Inc. (TSX: RDL - "Redline" or the "Company"), a leading provider
of specialized broadband wireless solutions, announced today that it
has now received an aggregate of approximately $11.96 million in
consideration from the exercise of warrants issued as part of the
Company's private placement announced in April 2011. This amount includes the amount received in the announcement on
November 12, 2012, and the aggregate number of shares issued as a
result of all warrants exercised (including those announced on November 12, 2012) is 3,241,204 common shares of the Company.
"Securing $12M of additional cash will allow us to accelerate our
already impressive growth in the energy market, especially for larger
system sales," said Eric Melka, Redline CEO.
These warrants represent some of the "First Warrants" and "Second
Warrants" issued as part of the Company's private placement announced
in April 2011. The exercise price was $2.30 per share in the case of
the First Warrants and $4.60 per share in the case of the Second
Warrants. There are 325,373 Second Warrants still to be exercised.
These Second Warrants represent total expected proceeds of $1,496,713
and they must be exercised by January 28, 2013 or they will expire on
that date. While the Company has no reason to believe that these above
referenced warrants will not be exercised, until Redline receives the
exercise forms and associated payments, there can be no assurance that
they will. The company will provide additional information in due
course. There are also 937,500 First Warrants representing total
expected proceeds of $2,156,250 still outstanding. The expiry date on
these First Warrants is June 10, 2014.
The warrants have previously been reported in the Company's financial
statements and management discussion and analysis and as a result, the
total potential diluted common shares outstanding have not changed as a
result of this warrant exercise.
Note: All amounts reported in this press release are in CDN dollars.
About Redline Communications
Redline Communications (www.rdlcom.com) is the innovator of Virtual Fiber™, a rugged wireless broadband
solution used to cost-effectively deploy and extend secure networks,
enable machine-to-machine (M2M) applications, connect digital oilfields
and smart grids, facilitate and enhance public safety networks, and
bring Internet access wherever and whenever it's needed - regardless of
terrain or remote location. For more than a decade Redline has
delivered powerful, versatile and reliable wireless systems to
governments, militaries, oil and gas companies and telecom service
providers through its global network of certified partners.
Forward Looking Statements
Certain statements in this release may constitute forward-looking
statements or forward-looking information within the meaning of
applicable securities laws. In some cases, forward-looking statements
can be identified by terms such as "could", "expect", "may", "will",
"anticipate", "believe", "intend", "estimate", "plan", "potential",
"project" or other expressions concerning matters that are not
historical facts. Readers are cautioned not to place undue reliance
upon any such forward-looking statements.
Such forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and uncertainties
that may cause the actual results, performance, achievements or
developments of Redline to differ materially from the results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements, by their
nature, are based on certain assumptions regarding expected growth,
management's current plans, estimates, projections, beliefs, opinions
and business prospects and opportunities (collectively, the
"Assumptions"). While the Company considers these Assumptions to be
reasonable, based on the information currently available, they may
prove to be incorrect.
Many risks, uncertainties and other factors could cause the actual
results of Redline to differ materially from the results, performance,
achievements or developments expressed or implied by such
forward-looking statements. These risks, uncertainties and other
factors include but are not limited to the following: significant
competition, competitive pricing practices, cautious capital spending
by customers, industry consolidations, rapidly changing technologies,
evolving industry standards, frequent new product introductions, short
product life cycles and other trends and industry characteristics
affecting the telecommunications industry; any material, adverse
effects on Redline's performance if its expectations regarding market
demand for particular products prove to be wrong; any negative
developments associated with Redline's suppliers and contract
manufacturing agreements including the Company's reliance on certain
suppliers for key components; potential penalties, damages or cancelled
customer contracts from failure to meet delivery and installation
deadlines and any defects or errors in Redline's current or planned
products; fluctuations in foreign currency exchange rates; potential
higher operational and financial risks associated with Redline's
efforts to expand internationally; a failure to protect Redline's
intellectual property rights, or any adverse judgments or settlements
arising out of disputes regarding intellectual property; changes in
regulation of the wireless industry or other aspects of the industry;
any failure to successfully operate or integrate strategic
acquisitions, or failure to consummate or succeed with strategic
alliances; and Redline's potential inability to attract or retain the
personnel necessary to achieve its business objectives or to maintain
an effective risk management strategy (collectively, the "Risks"). For
additional information on these Risks, see Redline's most recently
filed Annual Information Form ("AIF") and MD&A, which are available on
SEDAR at www.sedar.com and on the Company's website at
www.redlinecommunications.com. Redline assumes no obligation to update
or revise any forward-looking statements or forward-looking
information, whether as a result of new information, future events or
otherwise, except as expressly required by law. All forward looking
statements contained in this release are expressly qualified in their
entirety by this cautionary statement.
SOURCE: Redline Communications Group Inc.