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OTTAWA, ON, July 24, 2020 /CNW/ - Martello Technologies
Group Inc., ("Martello" or the "Company") (TSXV: MTLO), a developer
of enterprise digital experience monitoring ("DEM") solutions,
announced today that it has received approval from the TSX Venture
Exchange ("TSXV") for the sale of substantially all the assets and
certain liabilities of Elfiq Inc. ("ELFIQ" or the "Seller") to
Adaptiv Networks Inc. ("Adaptiv Networks"), an arm's
length Canadian SD-WAN company. The transaction was announced
on July 22, 2020.
The terms of the agreement are detailed in the press release
dated July 22, 2020. Adaptiv Networks
has acquired ELFIQ for approximately $800,000, in a cash and equity transaction, and
sixteen ELFIQ employees have been transferred to Adaptiv
Networks.
The transaction broadens Adaptiv Networks' portfolio of SD-WAN
solutions for mid-size enterprises and accelerates its
international expansion. Martello will focus its resources on the
Company's DEM strategy, to generate monthly recurring revenue from
solutions that improve the digital user experience for cloud
services such as unified communications and video conferencing. It
is expected that the divestment of ELFIQ will result in the
elimination of losses relating to this division in the near-term.
Operating losses for the ELFIQ division were $1.4M in the 2020 fiscal year.
About Martello Technologies Group
Martello Technologies Group Inc. (TSXV: MTLO) is a
technology company that provides digital experience monitoring
(DEM) solutions. The company develops products and solutions that
provide monitoring and analytics on the performance of real-time
applications on networks, while giving IT teams and service
providers control and visibility of their entire IT infrastructure.
Martello's products include unified communications performance
analytics software, and IT analytics software. Martello
Technologies Group is a public company headquartered
in Ottawa, Canada with offices
in Amsterdam, Geneva, Nice,
Paris, Dallas and New York. Learn more at
http://www.martellotech.com.
This press release does not constitute an offer of the
securities of the Company for sale in the
United States. The securities of the Company have not been
registered under the United States Securities Act of 1933, (the
"1933 Act") as amended, and may not be offered or sold within
the United States absent
registration or an exemption from registration under the 1933
Act.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news
release.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains "forward-looking statements".
Forward-looking statements can be identified by words such as:
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will" and similar references to future periods.
Examples of forward-looking statements include, among others,
statements we make regarding accretive monthly recurring revenues
and effect of closing on the Company's gross margins.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following:
- Continued volatility in the capital or credit
markets.
- Our ability to maintain our current credit rating and the
impact on our funding costs and competitive position if we do not
do so.
- Changes in customer demand.
- Disruptions to our technology network including computer
systems and software, as well as natural events such as severe
weather, fires, floods and earthquakes or man-made or other
disruptions of our operating systems, structures or
equipment.
- Delayed purchase timelines and disruptions to customer
budgets, as well as Martello's ability to maintain business
continuity as a result of COVID-19.
Any forward-looking statement made by us in this news release
is based only on information currently available to us and speaks
only as of the date on which it is made. Except as required by
applicable securities laws, we undertake no obligation to publicly
update any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new
information, future developments or otherwise.
SOURCE Martello Technologies Group