CDIALOGUES PLC 17 June 2016
CDialogues plc ("CDialogues", the "Company" or the "Group") Termination of contracts and initiation of business reviewCDialogues plc (AIM: CDOG) announces that the Group has received a notice of termination from Numbase Limited ("Numbase") in respect of the four contracts from which CDialogues generates all of its current revenues.
CDialogues has historically provided its services and received its revenues pursuant to agreements entered into with local partners, such as Numbase, rather than directly with the underlying Mobile Network Operators. The notice of termination indicates that Numbase wishes to terminate the contracts under which the Group provides mobile marketing and campaign services to Alfa in Lebanon, Touch in Lebanon, Zain in Kuwait and VIVA in Kuwait.
CDialogues is in discussion with Numbase in respect of the notice of termination, in order to seek alternative outcomes. The four contracts in question have different termination provisions, but should Numbase proceed with the termination, then the Board believes that the four contracts would have been terminated by the end of September 2016, at the latest.
In light of the notice of termination and the recent difficulties that the Company has experienced, including the Board's view that the Company is unlikely to engage in any new contracts until market conditions improve (as described in the Company's announcement of 26 May 2016), the Board has determined that it is appropriate to conduct a review of CDialogues' business and assets. The Group currently has a strong cash position and has no debt. The Board will consider all options to seek to mitigate losses, sustain the Group's cash balances to the greatest extent possible and preserve shareholder value.
Further announcements will be made as appropriate.
CDialogues Plc | Tel: +30 2106 300 930 |
George Karakovounis | |
Pale Spanos | |
Allenby Capital Limited | Tel: 0203 328 5656 |
David Hart | |
Alex Brearley | |
Walbrook PR Ltd | Tel: 020 7933 8780/ cdialogues@walbrookpr.com |
Paul Cornelius | Mob: 07866 384 707 |
Nick Rome | Mob: 07748 325 236 |
CDialogues plc published this content on 17 June 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 June 2016 06:29:11 UTC.
Original documenthttp://www.cdialogues.com/files/Notice_of_termination_of_contracts_and_initiation_of_business_review_17.06.2016.pdf?r=57639849e4f36
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