Redline Receives Additional $1.4M from Warrant Conversion and Issues Earnings Call Notice
TORONTO, Jan. 30, 2013, 2013 (Canada NewsWire via COMTEX) --
Early conversion of Debenture and early exercise of associated Warrants
demonstrates shareholder confidence and strengthens Redline`s balance
Redline Communications (www.rdlcom.com) Group Inc. (TSX: RDL), a leading provider of broadband wireless solutions for
machine-to-machine (M2M) communications issues notice today that it
will report financial results for its fourth quarter and year ended
December 31, 2012 before market open on March 27, 2012. A conference
call to discuss the results will be held the same day at 10:00 a.m.
Redline is also providing an update on the status of the exercise of
Warrants associated with the Debenture financing announced June 2011
(the "Debenture"). Since the Company's last update on January 8, 2013,
it has received an additional $1.4 million in proceeds from the
exercise of Warrants
In summary, the total proceeds from the Warrant exercise to date are
$13.4 million, comprised of $10.4 million from the exercise of 100% of
the Second Warrants which expired Jan 28, 2013 and $3.0 million from
the exercise of more than half of the First Warrants, well in advance
of their expiry date of June 2014.
The $8.3 million Debenture which bears interest at a rate of 5% per
annum and expires on June 10, 2016, was convertible at any time 90 days
following the date of issuance at the option of the holder. As of
January 28, 2013, $7.8 million of the Debenture has been voluntarily
converted to shares and the Company received notice that another
approximately $0.2 million will voluntarily convert on January 31,
2013, at which time approximately $8.0 million of the $8.3 million
Debenture will be converted to shares.
As of January 28, 2013, 2,255,436 shares have been issued on the
exercise of Second Warrants for total proceeds of $10.4 million,
leaving no Second Warrants to be exercised. Also as of January 28,
2013, 1,311,141 shares have been issued on the early exercise of First
Warrants for total proceeds of $3.0 million, leaving 944,295 First
Warrants to be exercised. The Warrants and Debenture 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 of 16,489,932 have not changed as a result of
this Warrant exercise.
"We`re very pleased that so many of our Debenture holders have converted
their Debentures and exercised their associated Warrants," said Eric
Melka, Redline CEO. "The early conversion of the majority of the
Debenture amount into common shares has strengthened our balance sheet
and the exercise of the Warrants has increased our cash position."
"Redline has been delivering very impressive results over the past few
quarters under a very strong management team," said Sebastian van
Berkom, a significant Redline shareholder. "I was happy to continue to
support Redline by converting my Debentures and exercising my Warrants,
and I believe this additional capital will help Redline grow to the
Note: All amounts reported in this press release are in Canadian dollars
unless otherwise stated.
About Redline Communications
Redline Communications (www.rdlcom.com) is the innovator of Virtual FiberTM, a specialized wireless broadband
solution used to cost-effectively deploy and extend secure networks,
enable 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 how
remote. For more than a decade Redline has delivered powerful,
versatile and reliable wireless solutions to governments, militaries,
oil and gas companies and telecom service providers through its global
network of certified partners. For more information visit www.rdlcom.com.
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.
SOURCE: Redline Communications Group Inc.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/January2013/30/c9684.html
SOURCE: Redline Communications Group Inc.
Redline Contact(s) Lynda Partner Communications +1-613-618-3200 email@example.com
George Kypreos Chief Financial Officer +1-905-479-8344 firstname.lastname@example.org
Twitter:@rdlcom Press Kit:http://redline.mobilitypr.com
[ Back To TMCnet.com's Homepage ]