Qumu Announces Compliance with Financial Covenants and Amendment to Credit Agreement
November 06 2017 - 4:05PM
Business Wire
Qumu Corporation (NASDAQ: QUMU) today announced, after
completing its full monthly compliance analysis following October
31, 2017, that the Company was in compliance with the cash and
eligible accounts receivable covenant of its term loan credit
agreement with HCP-FVD, LLC and Hale Capital Partners, LP.
Accordingly, the Company was not in default of the credit agreement
at October 31, 2017. Qumu has maintained compliance with all
financial covenants of the term loan credit agreement since it was
signed in October 2016.
As previously announced, the Company has been in discussions
with the lender to gain greater operational and financial
flexibility under the credit agreement. Today, the Company also
announced that it has entered into an amendment to its credit
agreement that significantly relaxes certain financial covenants.
In particular:
- a covenant requiring a minimum
percentage of eligible accounts receivable and cash to outstanding
obligations was reduced from 118% to 100%, and
- certain large current receivables will
no longer be excluded from eligible accounts receivable for
purposes of computing compliance with that covenant.
In light of these amendments, the Company forecasts ongoing
compliance with covenants and the ongoing ability to continue as a
going concern.
“I would like to thank Hale Capital for its continued support of
Qumu’s long-term vision to revolutionize the use of video in the
enterprise,” said Vern Hanzlik, President and CEO of Qumu. “This
amendment facilitates the execution of our long-term plans for
growing the company and reaching a positive cash flow
position.”
Forward-Looking Statements
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Any statements contained
in this press release that are not statements of historical fact
may be deemed to be forward-looking statements. Without limiting
the foregoing, words such as “may,” “will,” “expect,” “believe,”
“anticipate,” or “estimate” or comparable terminology are intended
to identify forward-looking statements. Such forward-looking
statements include, for example, statements about the Company’s
future compliance with the covenants of the credit agreement. The
statements made by the Company are based upon management’s current
expectations and are subject to certain risks and uncertainties
that could cause the actual results to differ materially from those
described in the forward-looking statements. These risks and
uncertainties include the risk factors described in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2016 and
other factors set forth in the Company’s filings with the
Securities and Exchange Commission.
About Qumu
Qumu (NASDAQ: QUMU) helps the world’s largest companies realize
the value of putting video to work for their digital workforce.
Organizations use Qumu software to create, manage and share video –
live streaming and on demand – turning video into an always-on
resource and connecting thousands of stakeholders across a single
enterprise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171106006380/en/
Qumu CorporationInvestor Contact:Vern Hanzlik,
650-396-8531President and CEOvern.hanzlik@qumu.com
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