DATA Communications Management Corp. (TSX: DCM) (“DCM” or the “Company”), a leading provider of marketing and business communication solutions to companies across North America, today provided an update regarding its existing senior credit facilities.
As previously disclosed, the Company is currently engaged in negotiations with its senior lenders regarding certain amendments (the “Credit Facilities Amendments”) to its senior credit agreements, including amendments to its financial covenants to align with an agreed budget for the next twelve months and enable the Company to resolve the issues it has encountered in connection with the recent implementation of the Company’s Enterprise Resource Planning system, such that the related adverse effects on the Company’s financial results no longer impact the Company’s ability to comply with its financial covenants on a trailing twelve-month basis. Those negotiations are continuing and, in that regard, the Company’s senior lenders have now agreed to waive certain financial covenants for the period of September 1, 2019 to December 22, 2019 and to extend the date by which the Credit Facilities Amendments are to be implemented from no later than December 15, 2019 to no later than December 22, 2019 Martech News.
There can be no assurance that the Company will negotiate and implement the Credit Facilities Amendments on terms satisfactory to the Company prior to December 22, 2019, or the expiry time of 5:00 p.m. (Toronto time) December 27, 2019 of the Company’s current rights offering (the “Rights Offering”), or to the satisfaction of the standby purchaser pursuant to the terms of the standby purchaser agreement in connection with the Company’s Rights Offering, or at all Martech.
Further details with respect to the Company’s senior credit facilities, Rights Offering and financial liquidity and capital resources can be found in the Company’s rights offering circular dated November 26, 2019 (the “Rights Offering Circular”) and other continuous disclosure filings of the Company on SEDAR (available at www.sedar.com). Holders of rights issued pursuant to the Rights Offering should carefully consider the risk factors and other information set out in the Rights Offering Circular and this press release before making an investment decision with respect to the exercise of the rights and the Company’s common shares.