Brampton, Ontario – December 16, 2019 – 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.
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.
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.
ABOUT DATA COMMUNICATIONS MANAGEMENT CORP.
DCM is a communication solutions partner that adds value for major companies across North America by creating more meaningful connections with their customers. DCM pairs customer insights and thought leadership with cutting edge products, modular enabling technology and services to power its clients’ go to market strategies. DCM helps its clients manage how their brands come to life, determine which channels are right for them, manage multimedia campaigns, deploy location specific and 1:1 marketing, execute custom loyalty programs, and fulfill their commercial printing needs all in one place.
DCM’s extensive experience has positioned it as an expert at providing communication solutions across many verticals, including the financial, retail, healthcare, consumer health, energy, and not for profit sectors. As a result of its locations throughout Canada and in the United States (Chicago, Illinois), it is able to meet its clients’ varying needs with scale, speed, and efficiency – no matter how large or complex the ask. DCM is able to deliver advanced data security, regulatory compliance, and bilingual communications, both in print and/or digital formats.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements in this press release constitute “forward looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward looking statements. These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees that future performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward looking statements, including the changes in the Company’s senior management and other factors discussed elsewhere in this press release and under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM’s management’s discussion and analysis and other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward looking statements.
For further information, contact:
Mr. Gregory J. Cochrane
Chief Executive Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.
Tel: (905) 791-3151