CALGARY, Alberta, Oct. 02, 2019 (GLOBE NEWSWIRE) -- Trakopolis IoT Corp. (TSXV: TRAK) ("Trakopolis" or the "Company") today announces that, further to its press release dated August 2, 2019 (the "Prior Release"), the amending agreement (the "Amending Agreement") entered into between the Company and its lender, ESW Holdings, Inc. (the "Lender") has expired, rendering the amendments set forth in the Amending Agreement ineffective.
As a result of the expiry of the Amending Agreement, the Company believes that it is in non-compliance with two of the covenants in its amended and restated loan agreement with the Lender dated November 27, 2018, as amended on March 15, 2019 (the "Loan Agreement") relating to liquidity and the annual value of customer contracts.
Failure to comply with the covenants in the Loan Agreement would result in an event of default pursuant to the Loan Agreement which could result in an acceleration of repayment of the indebtedness advanced thereunder which could impede Trakopolis' ability to operate as a going concern and may require Trakopolis to seek creditor protection.
As noted in the Prior Release, Trakopolis has undertaken a strategic process which involves the identification of capital market alternatives available to it including financing transactions and potential strategic combinations. The strategic review is ongoing and is being conducted by a Special Committee of the Board of Directors of the Company with the assistance of external legal and financial advisors. 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.
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 Company's belief that it may fail to comply with covenants in the Loan Agreement. The statements are dependent on a number of assumptions and risk factors, including the results of Trakopolis' testing of the covenants on the timeline set forth in the Loan Agreement. 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.
