Redknee Gets Approval for Rights Offering

TORONTOJuly 25, 2017 /CNW/ – Redknee Solutions Inc. (“Redknee” or the “Company”) (RKN.TO) announces that it has received shareholder approval for its previously announced rights offering (the “Rights Offering”). 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”).

The Rights Offering was approved by 92.58% of the 55,727,138 votes cast by holders of the Company’s Subordinate Voting Shares present in person or represented by proxy at the special meeting of shareholders held on July 25, 2017. The Company has therefore satisfied its shareholder approval requirement for the Rights Offering, and as such will commence with the launch of the Rights Offering.

“We are very encouraged by the strong vote of confidence that the shareholders have given us to proceed with our rights offering,” said Danielle Royston, CEO of Redknee. “Backed by shareholder approval, we will now turn towards proceeding with our Strategic Plan to build a platform for long-term growth, simplified operations and sustained profitability.”

Pursuant to the Rights Offering, eligible shareholders as of the close of business (Toronto time) on August 1, 2017 (the “Record Date”) will receive one right (“Right”) for each Subordinate Voting Share held as of the Record Date. Each Right will entitle the holder thereof to acquire one Subordinate Voting Share at a subscription price of Cdn$0.63 (the “Subscription Price”). The Subscription Price represents a 40.1% discount to the simple average of the closing price of the Subordinate Voting Shares on the Toronto Stock Exchange for the 20 trading days immediately preceding the date hereof. The Rights Offering is expected to expire on August 29, 2017 (the “Expiry Date”). Any Rights not exercised on or before the time the Rights expire will be void and will have no value.

Further details on the Rights Offering, including eligibility requirements for shareholders to participate and the procedures to be followed by shareholders in order to subscribe for Rights, will be included in a rights offering circular (the “Rights Offering Circular”) and rights offering notice (the “Rights Offering Notice”) which are expected to be filed with securities regulatory authorities in each province and territory of Canada on July 26, 2017. A copy of the Rights Offering Circular and Rights Offering Notice will be available on SEDAR at www.sedar.com.

The completion of the Rights Offering is conditional upon the satisfaction of certain conditions, including the approval of the Toronto Stock Exchange.

In addition, the Company expects to release its results for the third quarter of 2017 on or about August 9, 2017. The Company estimates that revenue for the quarter will be between US$31 million and US$33 million. However, there can be no assurance that such estimate will prove to be correct and actual revenue may vary significantly from such estimate.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.


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