CALGARY, AB / ACCESSWIRE / December 4, 2018 / Ivrnet Inc. (TSX-V: IVI) ("Ivrnet" or the "Corporation") announces it has restructured the repayment terms with R.C. Morris Capital Management Ltd.'s mezzanine loan as part of a recent initiative to replace the financing with less expensive capital.
Following six quarters of positive EBITDA, growth in new product sales, and reduced operating costs, Ivrnet is returning to the financial markets for a replacement to the mezzanine financing provided by R.C. Morris Capital Management Ltd.in 2016.
"The capital provided by RC Morris in 2016 was instrumental to Ivrnet's productization of 15 years of intellectual property, and to the restructuring of Ivrnet's SaaS infrastructure", said David Snell, Ivrnet's CEO, "but the company has progressed to a point where it believes less expensive capital is an option. RC Morris has been a great partner, and as such are very supportive of replacing their own debt with financing more suitable at this time."
Over the last 3 months Ivrnet has explored options with alternate financers and has several proposals on the table. "We want to ensure that Ivrnet takes the right deal for the company, not just the first deal that comes along, so we have presented to them a relaxation of the loan repayment to provide time to evaluate and select the best deal", stated Conrad Krebs of RC Morris. As part of the loan restructuring, RC Morris will allow Ivrnet to make interest only payments for up to 18 months. The intent, however, is to remove the RC Morris loan before that time.
"RC Morris' goal has always been to work with clients that could not find alternative financing and help them grow to the point that we are no longer needed. We are proud of the positive impact this has on our clients and feel Ivrnet is ready to take this step", continued Mr. Krebs.
In addition to providing the relaxation, RC Morris has agreed to provide consulting services to assist Ivrnet in evaluating deals and preparing materials.
About Ivrnet
Ivrnet is a software and communications company that develops, hosts, sells and supports value added business process improvement and advertising software applications, delivered through the traditional phone network and the Internet. These applications facilitate automated interaction through personalized communication between people; mass communication for disseminating information to thousands of people concurrently and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at any time, from anywhere in North America via voice, phone, fax, email, texting and the Internet.
Forward-looking Information
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. This forward-looking information is subject to known and unknown risks, uncertainties and other factors discussed in Ivrnet's documents filed on SEDAR (www.sedar.com).
Forward information contained in this press release is the anticipation that alternate financing will be obtained by Ivrnet and that Ivrnet will be able to pay out the RC Morris loan. Although Ivrnet has attempted to identify a variety of financing options, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such financing will prove to be available or that Ivrnet will be able to replace RC Morris loan with less expensive capital or at all, and events could differ materially from those anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. Ivrnet does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Ivrnet is available at www.sedar.com.
For further information, please contact:
Chris L. Topolniski - Chief Operating Officer, Ivrnet
Direct: (403) 538-9722
Cellular: (403) 870-2434
E-mail: [email protected]
Neither the 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.
SOURCE: Ivrnet Inc.