Toronto, Ontario--(Newsfile Corp. - November 14, 2023) - Danavation Technologies Corp. (CSE: DVN) (OTCQB: DVNCF) ("Danavation®" or the "Company") is pleased to provide a corporate update which includes financial information that collectively supports the Company's go-forward strategy and execution.
During the month of September, Danavation® successfully secured contracts for 11 additional installations that were announced on September 20, 2023 and September 11, 2023, which are expected to meaningfully contribute to revenue for fiscal 2024.
Further, the Company has initiated in a process with its debenture holders to extend the term of the convertible debentures closed on August 17, 2021 (see press release dated August 17, 2021) (the "Debentures") to allow the Company more time to repay the Debentures in an effort to allow it to focus on the short-term day to day growth of the business. The key features of the proposed amendments are: (i) the maturity date being extended from August 17, 2024 to September 30th, 2025; (ii) the conversion price being amended from $0.45 to $0.20; (iii) the forced conversion price being reduced from $0.75 to $0.35; and (iv) removing the 2% prepayment penalty (collectively, the "Amendments").
The Company has received written approval by more than 66% of the Debenture holders by way of a written resolution and the Company is working with the trustee to complete the Amendments shortly. The changes were proposed by the largest Debenture holder who holds $2 million of the $3.85 million (52%) of the principal amount of the Debentures outstanding and the Company is working with the trustee under the Debenture indenture to implement the Amendments and will seek approval of the Amendments from the Canadian Securities Exchange. A further announcement related to the effective date of the Amendments will be provided in due course.
"I am pleased with this start to our first fiscal quarter of 2024, as we exited September with new client contracts for installations of our Digital Smart LabelsTM and stand to benefit from the revenue associated with them, while also announcing a proposed extension of our Debentures," said John Ricci, CEO of Danavation. "We view this as a strong vote of confidence in the Company that, once approved, will allow us to remain entirely focused on growing clients and revenue for the next 24 months without undue pressure to repay the Debenture within the next year. We greatly appreciate the support of the Debenture holders as we continue to ramp up client contracts and grow the Company's revenue."
Danavation Technologies Corp. is the only North American-founded and headquartered technology company providing Digital Smart Labels™ and a software Platform-as-a-Service (PaaS) solution that enables companies across various sectors to automate labelling, price, product, and promotions in real-time. The Company's Digital Smart Labels™ enhance data accuracy and improve performance by removing high labour costs and low productivity typically associated with traditional labour-intensive workflows. Our goal is to create a sustainable and profitable business for shareholders while advancing sound environmental, social and governance practices, including by significantly reducing paper usage. Danavation® has introduced our solution to retailers across North America, including big box and boutique grocers, while also targeting new markets including healthcare providers, manufacturing, and logistics companies. Learn more about the background of Danavation® and our vision for the future on our website. As well, follow us on LinkedIn, Instagram, Twitter and YouTube for more updates on how we are transforming the retail landscape.
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This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. More particularly and without limitation, this news release contains forward‐looking statements and information relating, the future business of the Company, potential roll outs of the Company's products and services, further business from the Company's clients, industry outlook and potential and other matters. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
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