DENVER, Aug. 30, 2017 /PRNewswire/ - (TSX: IMP) (ITMSF:BB) – On February 5, 2016 Intermap Technologies Corporation ("Intermap" or the "Company") announced that it had entered into definitive agreements pertaining to a previously announced letter of award (see June 22, 2015, September 29, 2015 and December 31, 2015 press releases) for the creation, operation and maintenance of a national spatial data infrastructure ("SDI") program (the "Project"), valued at US$175 million. These arrangements contemplated that the Company would provide products and services pursuant to an engineering, procurement and construction agreement ("EPC Agreement") to a client, Air-Map SARL ("Air-MAP"), who had in turn entered into an agreement with the Ministry of Planning of the Democratic Republic of Congo ("DRC") to complete the Project for the DRC. In the Company's prior press releases (see February 5, 2016 and July 5, 2016) the Company advised that the commencement of its EPC Agreement was subject to the finalization of the Project's financing facility which was the obligation of its client (Air-Map) and, in July 2016, the Air-Map advised that the financing process was in its final phase with a leading multilateral financial institution.
To date, the Company has not received notice that Air-Map has secured this financing, nor has the Company received the initial payment contemplated by the EPC Agreement (US$12 million), payment of which is the trigger for commencement of the EPC Agreement. Additionally, since August 2016 the Company has not been engaged to provide any due diligence information regarding the Company and its Orion Platform to assist Air-Map in securing the Project financing, which would, in the Company's experience, be typical for project-related financings such as this. Further, the Company has not received any notice of termination of the EPC Agreement, the EPC Agreement has not terminated in accordance with its terms and the circumstances for which the EPC Agreement may be terminated by the Company are limited.
Since the original submission of the bid by Air-Map in May 2015 and the letter of award by the Ministry of Planning of the DRC in June 2015, the country risk rating and business climate rating for the DRC have significantly deteriorated. The DRC is currently in a political crisis which has led to protests and increased violence in the region and these circumstances raise significant concerns relating to security and safety for those operating in country.
Based on the foregoing, Management of the Company now believes that due to the passage of time and in light of the increasing political crisis in DRC and escalating violence in region, it is highly unlikely that access to credit markets will be available for this Project to permit Air-Map to satisfy its financing condition such that the EPC Agreement can proceed. Further, the current political and security instability introduce significant risk to employees and Company assets such that the Company would be unlikely to proceed with the Project at this time if financing was available.
The Company has not previously recognized any revenue in its financial statements with respect to the EPC Agreement.
The Company is focused on executing its new strategic direction, completing the comprehensive upgrade of its radar system, executing on two previously announced mapping services contracts, and adding customers in its core risk management business, where it has seen increased demand for risk management software and services related to flood underwriting.
About Intermap Technologies
Headquartered in Denver, Colorado, Intermap (www.intermap.com) is an industry leader in geospatial intelligence solutions. These geospatial solutions are used in a wide range of applications including, but not limited to, location-based information, risk assessment, geographic information systems, engineering, utilities, global positioning systems, oil and gas, renewable energy, hydrology, environmental planning, land management, wireless communications, transportation, advertising, and 3D visualization. Intermap generates revenue from three primary business activities, comprised of i) data acquisition and collection, using proprietary, multi-frequency, radar sensor technologies, ii) value-added data products and services, which leverage the Company's proprietary NEXTMap® database, together with proprietary software and fusion technologies, and iii) commercial applications and solutions, including a webstore and software sales targeting selected industry verticals that rely on accurate high resolution elevation data. The Company is a world leader in data fusion, analytics, and orthorectification, and has decades of experience aggregating data derived from a number of different sensor technologies and data sources. For more information please visit www.intermap.com.
Intermap Reader Advisory
Certain information provided in this news release constitutes forward-looking statements, including Management's assessment of the likelihood that Air-Map will satisfy the financing condition for the Project and that the Project will proceed. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. In particular, in respect of the Project financing, this obligation to secure such financing rests solely with Air-Map and the Company has no responsibility for securing such financing or satisfying any other conditions precedent contained in agreements between Air-Map and the DRC. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.
SOURCE Intermap Technologies Corporation