TORONTO, Aug. 10, 2020 /CNW/ -- Quisitive Technology
Solutions Inc. ("Quisitive" or the "Company") (TSXV:
QUIS), a premier Microsoft solutions provider that helps customers
navigate the ever-changing climate that their business relies upon,
is pleased to announce the successful completion of its debt
consolidation initiatives pursuant to the terms of a loan agreement
entered into between the Company, certain material subsidiaries of
the Company, as guarantors, and a leading Canadian Schedule I
Chartered Bank (the "Bank") dated August 10,
2020 (the "Loan Agreement").
The Loan Agreement provides for a five-year term loan of
US$16,133,000 (the "Term
Loan") and a revolving operating line of credit of up to
US$5,000,000 (the "Operating
Line"), with all debts, liabilities, and obligations of the
Company and guarantors under the Term Loan and Operating Line
collaterally secured by a first-ranking security interest in all of
the present and future undertaking, property and assets of the
Company and its material subsidiaries. The proceeds from the Term
Loan were used to refinance and retire the existing debt
obligations of the Company with Gideon, LLC and the lenders that
advanced funds to the Company in 2019 in connection with the
acquisitions of Corporate Renaissance Group Inc. and Menlo
Technologies, Inc.
Interest on the Term Loan is payable on a monthly basis, based
on a price grid which ranges, depending on the Company's total
senior debt to EBITDA ratio, from the Bank's prime rate plus 1.5%,
to the Bank's prime rate plus 2.25%, with advances repayable in
monthly instalments of principal plus interest with a final payment
of any amounts then outstanding due at maturity. The Operating Line
is repayable with monthly interest consistent with the Term Loan
rates. The Loan Agreement will be filed under the Company's issuer
profile on SEDAR at www.sedar.com.
"This debt consolidation strengthens our financial position and
significantly lowers our cost of capital," stated Mike Reinhart, Chief Executive Officer of
Quisitive. "We welcome this growing partnership with this leading
Canadian financial institution that includes the debt consolidation
as well as the key role this bank played in our recent bought deal
financing."
The Company will realize a reduction of annual interest expenses
of more than US$1.5 million as a
result of this debt consolidation and the recent note conversion
previously announced on July 2,
2020.
About Quisitive:
Quisitive is a premier Microsoft solutions provider that
helps enterprise organizations move, operate and innovate in the
Microsoft cloud: Microsoft Azure, Microsoft Dynamics and
Microsoft 365. Quisitive also provides proprietary Software as
a Service ("SaaS") solutions, such as CRG emPerform™ and Quisitive
LedgerPay that complement the Microsoft
platform. Quisitive serves clients globally with offices
in Austin, TX; Dallas, TX; Denver,
CO; Minneapolis, MN; Silicon Valley, CA; Washington,
DC; Ottawa, ON; Toronto, ON and Hyderabad,
India. For more information,
visit www.Quisitive.com and follow @BeQuisitive.
Financial Measures and EBITDA
There are measures included in this news release that do not
have a standardized meaning under generally accepted accounting
principles (GAAP) and therefore may not be comparable to similarly
titled measures and metrics presented by other publicly traded
companies. The Company includes these measures because it believes
certain investors use these measures and metrics as a means of
assessing financial performance. EBITDA (earnings before interest,
taxes, depreciation and amortization is calculated as net earnings
before finance costs (net of finance income), income tax expense,
and depreciation and amortization of intangibles) is a non-GAAP
financial measure that does not have any standardized meaning
prescribed by IFRS and may not be comparable to similar measures
presented by other companies.
Cautionary Note Regarding Forward Looking Information
Some statements in this news release contain forward-looking
information. These statements include, but are not limited to,
statements with respect to proposed activities, consolidation
strategy and future expenditures. These statements address future
events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such factors include, among others,
statements with respect to the financial position of the Company,
and the future growth potential of the Company.
These forward-looking statements are based on reasonable
assumptions and estimates of management of the Company at the time
such statements were made. Actual future results may differ
materially as forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the company to materially
differ from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such
factors, among other things, include: changes in technology,
customer markets and demand for the Company's services; the
efficacy of the Company's software and product offering; sales and
margin risk; acquisition and integration risks; dependence on
economic and market conditions including, but not limited to,
access to equity or debt capital on favourable terms if required;
changes in market dynamics including business relationships and
competition; information system risks; risks associated with the
introduction of new products; product design risk; risks related to
the Company being a holding company; environmental risks; customer
and vendor risks; credit risks; tax and insurance related risks;
risks of legislative changes; risks relating to remote operations;
key executive risk; risk of litigation risks; risks related to
contracts with third party service providers; risks related to the
enforceability of contracts; risks related to the COVID-19
pandemic; risks related to the economy generally; the limited
operating history of the Company; reliance on the expertise and
judgment of senior management of the Company; risks related to
proprietary intellectual property and potential infringement by
third parties; risks relating to financing activities including
leverage; risks relating to the management of growth; increased
costs associated with the Company becoming a publicly traded
company; increasing competition in the industry; risks relating to
energy costs; reliance on key inputs, suppliers and skilled labour;
cyber-security risks; risks related to quantifying the Company's
target market; risks related to industry growth and consolidation;
fraudulent activity by employees, contractors and consultants;
conflicts of interest; risks related to the cost structures of
certain projects; risks relating to certain remedies being limited
and the difficulty of enforcement of judgments and effect service
outside of Canada; risks related to future dispositions; sales
by existing shareholders; the limited market for securities of the
Company; price volatility of the common shares of the Company; no
guarantee regarding use of available funds; currency fluctuations;
and those factors described under the heading "Risks Factors" in
the Company's annual information form dated May 15,
2020 available on SEDAR. Although the forward-looking
statements contained in this news release are based upon what
management of the company believes, or believed at the time, to be
reasonable assumptions, the company cannot assure shareholders that
actual results will be consistent with such forward-looking
statements, as there may be other factors that cause results not to
be as anticipated, estimated or intended. Accordingly, readers
should not place undue reliance on forward-looking statements and
information. There can be no assurance that forward-looking
information, or the material factors or assumptions used to develop
such forward-looking information, will prove to be accurate. The
Company does not undertake any obligations to release publicly any
revisions for updating any voluntary forward-looking statements,
except as required by applicable securities law.
Neither TSXV nor its Regulation Services provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Quisitive