NEW YORK, Aug. 15, 2016 /PRNewswire/ -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) ("ET" or the "Company"), a provider of cloud-based mobile network solutions, today announced that it had reached agreement in principle with its senior secured lender to increase and restructure its existing $6 million loan.
Under the terms of the proposed Second Amendment, the senior secured lender will increase the loan facility by $1,202,447, waive the Company's existing defaults under the financial covenants and will reset the agreed maturity date to December 31, 2016, among other changes.
Hal Turner, Executive Chairman of the Board of ET, commented: "It gives me great pleasure to confirm that we have reached agreement in principle with our senior secured lender to restructure our debt financing arrangements. This will give significant comfort to all our stakeholders and gives the Company a solid foundation to continue to execute on its ambitious restructure and growth strategy. Our senior lender and customers tell us that they have been very impressed with the professionalism of the new management team who have worked tirelessly to rebalance the business so that it is sustainable. I thank each of my management team colleagues for their noteworthy leadership and contributions to our worthy mission."
Mr. Turner continued: "Throughout the recent financial difficulties, our senior lender and our major partner, Vodafone Enabler, have supported us beyond the call of duty. Our thanks go to these critical stakeholders. Our true strategic partnership with Vodafone Enabler continues to flourish."
Mr. Luis Jiménez-Tuñón, Chief executive of Vodafone Enabler, said: "Elephant Talk and Vodafone Enabler continue to strengthen their partnership. We are impressed with the continued performance of the ET platform, supporting ET's management restructuring efforts which will provide real opportunities for sustainable growth. Already this last year, we grew our subscriber base on the ET platform by 9%, and with our new joint strategic initiatives we are looking to grow from 1.2m active subscribers to 1.6m subscribers in the next fiscal year. We continue to innovate and we look forward to working with ET to evolve the platform to a truly global cloud platform, and we have specific new technology projects and developments in our pipeline which we expect will be leveraged wider within Vodafone."
About Elephant Talk Communications Corp.:
ET and its subsidiaries provide a fully managed 'single sign on and application access' Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) application designed for communications services providers and enterprises, delivered over the web. SaaS are applications designed for end-users, delivered over the web. PaaS is a set of tools and services designed to make coding and deploying those applications quickly and efficiently. IaaS is the hardware and software solution that powers it all including servers, storage, networks and operating systems. The Company is comprised of an experienced management team, architects, software developers, implementation specialists and an operations team who bring turnkey mobile solutions to the retail telecommunications industry. ET also provides software based authentication and voice-biometrics technology and services through its wholly owned subsidiary, ValidSoft UK Limited ("ValidSoft").
Please visit www.elephanttalk.com for more information.
About ValidSoft UK Ltd:
ValidSoft, a subsidiary of Elephant Talk Communications Corp., secures transactions using personal authentication and device assurance. We enable our customers to enhance their security while improving their user experience, utilizing our multi-factor authentication platform, Voice Biometric engine and Device Trust technology, all of which may be used as 'stand-alone' or integrated into multi-vendor solutions. ValidSoft serves multiple clients across the financial services, government and enterprise sectors and is the only company to have been granted four European Privacy Seals, reflecting its commitment to strong data privacy. Visit: www.validsoft.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Elephant Talk's plans and objectives, projections, expectations and intentions (including, without limitation, Elephant Talk's plans in regard to its ValidSoft subsidiary). These forward-looking statements are based on current expectations, estimates and projections about Elephant Talk's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Elephant Talk may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Elephant Talk also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Elephant Talk's filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Elephant Talk.
Investor Relations Contact:
Mr. Steve Gersten
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SOURCE Elephant Talk Communications Corp.