– No Standby Commitment Necessary Given Success of Offering –
TORONTO, Sept. 1, 2017 /CNW/ – Redknee Solutions Inc. (“Redknee” or the “Company”) (TSX: RKN) would like to provide an update on its previously announced rights offering to holders of its subordinate voting shares (the “Rights Offering”). The Rights Offering expired on August 29, 2017 and is scheduled to close on September 6, 2017.
The Rights Offering was over-subscribed prior to ESW Capital, LLC (“ESW”) exercising its additional rights and as such Wave Systems Corp. was not required to fulfill its obligations under the standby purchase agreement. On the closing of the Rights Offering, an aggregate of 101,622,337 subordinate voting shares will be issued under the basic subscription privilege and a further 6,878,479 subordinate voting shares will be issued pursuant to the additional subscription privilege. As a result, a total of 108,519,936 subordinate voting shares will be issued upon the closing of the Rights Offering for aggregate proceeds of approximately Cdn$68 million. The net proceeds of the Rights Offering will be used to fund a restructuring of the business in furtherance of the previously announced strategic plan (the “Strategic Plan”).
“We are very pleased with the success of the Rights Offering, and sincerely thank our shareholders for their continued support,” said Danielle Royston, CEO of Redknee. “The positive response demonstrates a vote of confidence in our ability to execute on our Strategic Plan to build a platform for long-term growth, simplified operations and sustained profitability.”
Prior to the Rights Offering, ESW and its affiliates beneficially owned and controlled approximately 13% of the issued and outstanding subordinate voting shares on a non-diluted basis, and 39% on a partially diluted basis. Following the Rights Offering, ESW and its affiliates beneficially own and control approximately 13% of the issued and outstanding subordinate voting shares on a non-diluted basis, and 29% on a partially diluted basis.
ESW has until the close of business on September 6, 2017 to advise Redknee whether it intends to exercise its previously announced subsequent issuance right pursuant to which it is entitled to acquire approximately 44.6 million additional subordinate voting shares at a price of $0.63 per share.
A further press release will be issued upon closing of the Rights Offering.
Redknee monetizes today’s digital world for communications service providers. Our market-leading portfolio of monetization and subscriber management solutions includes real-time billing, charging, policy and customer care modules and is available on premise, cloud-based, or as Software-as-a-Service. With a central focus on driving customer success, Redknee’s products power growth and innovation for operators globally. Established in 1999, Redknee Solutions Inc.(TSX: RKN) can be found on the Toronto Stock Exchange. For more information about Redknee, please go to www.redknee.com.
SOURCE Redknee Solutions Inc.