Turnium Announces Completion of Restructuring
Vancouver, Canada--(Newsfile Corp. - October 25, 2022) - Turnium Technology Group Inc. (TSXV: TTGI) ("Turnium" or "the Company"), an industry leader in cloud-native software-defined wide area networking solutions (SD-WAN), announced it has completed a restructuring plan that aims to improve operational efficiencies while reducing administrative and overhead costs by over $1 million per year, shortening the projected time to profitability while preserving R&D, sales and marketing capacities.
Josh Hicks, VP Product & Engineering, takes over management of R&D from Haresh Kheskani, CTO, who will leave the company at the end of the year after having successfully built out the Company's Halifax R&D facilities. Aaron Patton, President of Tenacious Networks, the Company's IT services division, will take over the role and responsibilities of the COO-Technology, previously held by Colin Atkinson, who is leaving the Company. Juliet Jones, CFO, has resigned and will be leaving around the end of November. The company has initiated the recruitment of Juliet's replacement.
Turnium has a $1.85M loan facility with affiliates of FirePower Capital. The Company is actively negotiating an amendment to the loan facility, including a potential extension of a partial principal repayment which is due on May 31, 2023, as well as adjustments to the financial covenants to better meet the growth trajectory of the Company. The covenants to be adjusted include minimum cash balance requirements, which are currently non-compliant and monthly minimum revenue requirements. There can be no assurance given that these negotiations will be successful. The loan facility will continue to bear interest at a rate of 12.7% per annum payable monthly until its maturity on July 31, 2024.
The Company is also forming an M&A committee of current board members, led by Ralph Garcea, to evaluate various strategic alternatives.
Derek Spratt, CEO, stated, "With the challenging global economic conditions, Turnium, like many other technology companies, is restructuring to be in a better position to navigate through these unprecedented times. We continue to see significant sales opportunities, are projecting solid revenue growth for the current fiscal year, and anticipate that our upcoming next-generation SD-WAN product launch will accelerate that growth further."
About Turnium Technology Group Inc.
Turnium Technology Group Inc. delivers its SD-WAN solution as a white label, containerized, disaggregated software platform that channel partners host, manage, brand, and price or as a managed cloud-native service provided by Turnium. Both Turnium SD-WAN solutions are available through a channel partner program designed for Communications Service Providers, Internet and Managed Service Providers, System Integrators, and Value-Added Resellers.
SD-WAN is revolutionizing the networking and telecommunications industry by abstracting secure, high-speed networking and network control from underlying physical circuits. SD-WAN frees enterprises, small and medium businesses, cloud and managed services providers from the business and cost constraints imposed by traditional telecommunications companies.
Investor Relations: Bill Mitoulas
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This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain acts, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the Company may terminate and not proceed with the Agreement, or that the Agreement and associated transactions will not be successfully completed for any reason (including failure to obtain the required acceptance from the TSX Venture Exchange). The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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