TORONTO, March 31, 2021 /CNW/ - Redline Communications
Group Inc. ("Redline") (TSX: RDL), a leading-edge provider of
industrial wireless broadband network connectivity solutions for
mission-critical applications, is pleased to announce today the
signing of a contribution agreement by the Government of Canada
Strategic Innovations Fund ("SIF") to accelerate the
development of mission critical Industrial 5G products and
solutions.
RDL has a long history of innovation for satisfying industrial
customer's needs for reliable mission critical wireless networks.
As most wireless vendors cater to mobile network operators (MNO),
there is a clear gap in the industrial 5G (i5G) market that will be
addressed by this investment.
The investment by SIF will accelerate the development of the
world's first i5G platform catering to Mission Critical Private
Network customer, adopters of Industry 4.0. This coming wave
of IoT data driven operations, from manufacturing to mining, needs
a highly reliable, smart wireless network to accompany it, tailored
to the unique and highly demanding industrial customer. With its
established and growing base of network installations worldwide,
Redline is well-positioned to develop and deploy these solutions in
support of the growth of our customers worldwide.
"This investment will accelerate the innovative development of
products and solutions for mission critical industrial networks
developed in conjunction with our leading customers worldwide,",
stated Stephen Sorocky, Redline's
CEO. "We express our appreciation for the confidence shown by the
Strategic Innovations Fund in their support to creating a
world leading team of highly skilled staff and increased
collaboration with universities."
Under the terms of the agreement, the SIF will reimburse 40% of
eligible costs incurred for specified research and development
projects to be undertaken by the Company estimated to total
$37 million over a period of 4 ½
years. A maximum of $14 million
is available to the Company by way of a repayable loan. The
SIF project period runs from August
2020 to April 2025. Cost reimbursements under the SIF
program will be provided to Redline on a quarterly basis based upon
the eligible spending of the prior quarter. Reimbursements
will commence in the period following execution of the
agreement. Amounts received by the Company under the SIF
program are repayable, based upon revenues of the Company,
beginning in April 2028 for a period
of up to 15 years concluding in 2043. The maximum amount
repayable by the Company is 1.45 times the reimbursed funds.
The SIF program also has certain conditions related to Canadian
employment, employment conditions, ownership of R&D and other
matters and financial covenants, including change of control of the
Company.
About Redline Communications
Redline Communications
(TSX:RDL) designs and manufactures powerful wide-area wireless
networks for mission-critical applications in challenging
locations. Redline networks are used by Oil & Gas companies
onshore and offshore, Mining companies on surface and underground
operations, by municipalities to remotely monitor infrastructure,
and by specialized telecom service providers to deliver premium
services. Hundreds of businesses worldwide rely on Redline to
engineer, plan and deliver ruggedized, secure and reliable networks
for their IoT, voice, data, and video communications needs. For
more information visit www.rdlcom.com.
SOURCE Redline Communications Group Inc.