VANCOUVER, Feb. 14, 2019 /CNW/ - UrtheCast Corp. (TSX: UR)
("UrtheCast" or the "Company") announces that UrtheCast, Deimos
Imaging, S.L.U. ("Deimos Imaging"), a wholly-owned subsidiary of
UrtheCast, UrtheDaily Funding L.P. (the "Lender") and U.S. Bank
National Association have entered into a mutual termination
agreement (the "Termination Agreement") dated February 13, 2019 which formally terminates the
credit agreement (the "Credit Agreement") dated as of May 18, 2018 among the parties.
Under the Termination Agreement, UrtheCast has agreed that in
lieu of all termination fees otherwise payable under the Credit
Agreement, the approximately 14 million warrants issued to the
Lender on execution of the Credit Agreement, having an exercise
price of $0.48, an expiry date of
May 25, 2023 and substantially
similar terms and conditions as the warrants issued by UrtheCast in
connection with its subordinated capital financing in May 2018, will become exercisable upon
alternative financing for the UrtheDaily Constellation being
secured and drawn down, subject to approval from the Toronto Stock
Exchange. In addition, UrtheCast has agreed to pay the expenses of
the Lender in connection with the Credit Agreement in the amount of
approximately $325,000 in
installments due on February 28,
2019, March 31, 2019 and
June 30, 2019.
The termination of the Credit Agreement will not impede or
adversely impact UrtheCast's ability to service its customers and
will allow UrtheCast to seek alternative financing for the
UrtheDaily Constellation with greater structural and operational
flexibility, although there can be no assurance that alternative
financing will be obtained on more flexible terms or at all.
Management believes the recent acquisition of Geosys and the
significant binding contractual commitments for UrtheDaily data
validates the business case of the UrtheDaily Constellation.
About UrtheCast
UrtheCast Corp. is a Vancouver-based technology company that serves
the rapidly evolving geospatial and geoanalytics markets with a
wide range of information-rich products and services. The Company
operates Earth Observation (EO) sensors in space, through its
subsidiary Deimos Imaging, including two satellites, Deimos-1 and
Deimos-2, to produce imagery data for partners and customers in
multiple markets. UrtheCast processes and distributes imagery data
and value-added products on behalf of the PanGeo Alliance, a
network of seven satellite operators with a combined 13 medium- and
high-resolution EO sensors. Additionally, UrtheCast is developing
and expects to launch the world's first fully-integrated
constellation of sixteen multispectral optical and SAR satellites,
called OptiSAR™, and a satellite constellation designed to capture
high-quality, medium- resolution optical imagery of the Earth's
entire landmass (excluding Antarctica) every day, called UrtheDaily™.
Also, UrtheCast subsidiary Geosys is the first global digital
agriculture company founded by agronomists. With more than 30 years
of industry experience, Geosys provides clients with data, analysis
and insights needed to make more informed decisions. Common shares
of UrtheCast trade on the Toronto Stock Exchange as ticker
"UR".
For more information, visit UrtheCast's website at
www.urthecast.com.
Forward Looking Information
This release contains certain information which, as
presented, constitutes "forward-looking information" or
"forward-oriented financial information" within the meaning of
applicable Canadian securities laws. Forward-looking information
involves statements that relate to future events and often
addresses expected future business and financial performance,
containing words such as "anticipate", "believe", "plan", "target",
"estimate", "expect" and "guidance", statements that an action or
event "may", "might", "could" or "will" be taken or occur, or other
similar expressions and includes, but is not limited to, statements
relating to: UrtheCast's ability to obtain alternative financing
for the UrtheDaily Constellation on more flexible terms or at all;
UrtheCast's expectations of raising additional capital and
continuing as a going concern. Such statements reflect UrtheCast's
current views with respect to future events. Such statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by UrtheCast, are inherently subject to
significant uncertainties and contingencies. Many factors could
cause UrtheCast's actual results, performance or achievements to be
materially different from any future results, performance, or
achievements that may be expressed or implied by such
forward-looking statements, including, among others: UrtheCast's
inability to obtain alternative financing for the UrtheDaily
Constellation on more flexible terms or at all; UrtheCast's
inability to access additional capital and continue as a going
concern; as well as those factors and assumptions discussed in
UrtheCast's annual information form dated April 2, 2018, which is available under
UrtheCast's SEDAR profile at www.sedar.com. UrtheCast cautions
readers that such factors and uncertainties are not exhaustive and
that should certain risks or uncertainties materialize, or should
underlying estimates or assumptions prove incorrect, actual
results, performance or achievements may vary significantly from
those expected. There can be no assurance that the actual
strategies, results, performance, events or activities anticipated
by the Company will be realized or, even if substantially realized,
that they will have the expected consequences to, or effects on,
the Company. UrtheCast undertakes no obligation to update
forward-looking statements except as required by Canadian
securities laws. Readers are cautioned against attributing undue
certainty to forward-looking statements.
SOURCE UrtheCast Corp.