TEL AVIV, Israel, March 14, 2016 /PRNewswire/ -- RiT
Technologies (NASDAQ: RITT), a leading provider of Converged
Infrastructure Management Solutions, announced today a warning of
its current negative cash flow status. This follows the previous
press release dated February 11,
2016, in which the Company announced collection problems
from its distributor in Russia and
CIS due to the financial situation in that region.
Given the situation, the Company initiated a plan that
includes:
- Major expenses reduction, including layoffs of employees as
part of our recovery plan.
- Increased collection efforts of the overdue debts. Such efforts
did not result in satisfactory outcome yet but we anticipate a
collection progress to start recovering the debts by end of
March 2016.
- The company also requested an additional loan amount of
$3 million under the terms of the
Loan Agreement between RiT and STINS COMAN (its controlling
shareholder), dated June 11, 2009 (as
amended). Such request was not fulfilled yet however the company
expects to receive the aforesaid loan amount by the beginning of
April 2016 (based on STINS COMAN
notification).
"We are facing substantial financial difficulties currently.
However, we expect receiving funds from STINS COMAN and RiT CIS by
the beginning of April 2016 thereby
relieving our difficulties and enabling us to succeed in our
anticipated recovery plan. In parallel we keep looking for
financing in few possible models and we continue our collection
efforts and the reduction of our expenses," commented Mr. Yossi Ben Harosh, President and CEO of RiT
Technologies Ltd.
"We are committed to support RiT recovery plan and we trust the
Company to get back to normal operations ASAP. We appreciate the
support we get from our strategic vendors," commented Mr. Sergey Anisimov, Chairman of the Board of RiT
Technologies Ltd.
About RiT Technologies
RiT Technologies (NASDAQ:
RITT) is a leading provider of converged IT infrastructure
management and connectivity solutions. RiT offers a platform that
provides a unified way to manage converged systems and services to
improve network utilization, streamline infrastructure operations,
reduce network operation cost, optimize future investments and
enhance data security.
RiT's connectivity solution includes IIM - Intelligent
Infrastructure Management, high performance end-to-end structured
cabling solutions.
RiT Technologies' subsidiary RiT Wireless Ltd. produces a range
of optical wireless solutions under the Beamcaster brand, which
provide high speed, highly secure data communications across indoor
open spaces.
Deployed around the world in data centers, large corporations,
government agencies, financial institutions, telecommunications,
airport authorities, healthcare organizations and educational
facilities. RiT's shares are traded on the NASDAQ Capital Market
under the symbol RITT.
Safe Harbor Statement
In this press release, all
statements that are not purely about historical facts, including,
but not limited to, those in which we use the words "believe,"
"anticipate," "expect," "plan," "intend," "estimate", "forecast",
"target", "could" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. For example, when we discuss the
expectation to receive funds from STINS COMAN and RiT CIS by the
beginning of April 2016 and/or our
anticipated recovery plan, we are using forward-looking
statements. While these forward-looking statements represent our
current judgment of what may happen in the future, actual results
may differ materially from the results expressed or implied by
these statements due to numerous important factors, including, but
not limited to, those described under the heading "Risk Factors" in
our most recent Annual Report filed with the Securities and
Exchange Commission (SEC) on Form 20-F, which may be revised or
supplemented in subsequent reports filed with the SEC. These
factors include, but are not limited to, the following: our ability
to raise additional financing, if required; the continued
development of market trends in directions that benefit our sales;
our ability to maintain and grow our revenues; our dependence upon
independent distributors, representatives and strategic partners;
our ability to develop new products and enhance our existing
products; the availability of third-party components used in our
products; the economic condition of our customers; the impact of
government regulation; and the economic and political situation in
Israel. Except as otherwise required by applicable law, we
expressly disclaim any obligation to update the forward-looking
statements in this press release, whether as a result of new
information, future events or otherwise.
CONTACTS:
Yossi Ben
Harosh, President and CEO
yossibh@rittech.com
www.rittech.com
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SOURCE RiT Technologies