MONTREAL (Quebec), April 17, 2014
Alphinat Inc. (“Alphinat”) (TSX-V: NPA), a leader in innovative Software for the Smart Enterprise™, announces its results for the quarter ended February 28, 2014.
During the quarter under review, Alphinat has focused its efforts on nurturing and expanding its distribution channels and on diversifying its geographic and industry sector presence.
Alphinat has continued to make strong headway into partnerships for enterprise license sales, OEM agreements as well as for launching SaaS services. We have seen significant uptake in sales with partners, with a growing number of installed clients in various geographies and industry sectors. Furthermore, during the period under review, Alphinat has been involved in the implementation of SmartGuide with clients in various vertical markets.
During the quarter under review, Alphinat has seen OEM sales by partner CSDC continue to progress with the addition of clients in the USA and in Canada. During the same period, a large municipality in France ordered additional SmartGuide licenses. SaaS sales by partner Vicrea have also continued to increase at a steady pace.
During the period under review, Alphinat received an order for delivery of a SaaS-based solution from a private sector enterprise.
The Workplace Safety and Insurance Board of Ontario (WSIB) and a client in Saskatchewan have confirmed the renewal of their respective annual software maintenance contracts.
In January 2014, the Company finalized a contract renewal with an agency of the government of France that allows France’s SGMAP organization (Secrétariat Général de Modernisation de l’Appareil Public), the leading agency of the government of France for State Modernisation, to continue to leverage SmartGuide and SmartGuide PaaS Edition to deliver citizen-centric e-government services. The contract has been renewed for three years with an option for a fourth year. This new contract puts Alphinat in a direct relationship with the SGMAP and allows the client to acquire additional software licenses, annual maintenance and associated professional services.
Profit before financing expenses and amortization amount to $14,160 for the quarter ended February 28, 2014. The loss for the 3-month period ended February 28, 2014 is $27,782 or $0.001 per outstanding common share compared to a profit of $144,945 or $0.003 per outstanding common share for the corresponding period in 2013.
Alphinat’s financial statements and Management’s Discussion and Analysis for the quarter ending February 28, 2014 can be found on SEDAR, at www.sedar.com.
Additionally, Alphinat announces the issuance of 198,989 Bonus Shares as set forth in the Management Proxy Circular dated January 29, 2014. On August 7, 2013, as announced in its press releases, the Corporation closed the first tranche of a private placement consisting of Class A Units, each comprising a Class A Debenture accompanied by one Bonus Common Share per dollar of Class A Debenture subscribed and Class B Units, each comprising a Class B Debenture accompanied by one Bonus Common Share per dollar of Class B Debenture subscribed.
The Class A Debentures bear interest at 10% annually with interest payable quarterly and mature on September 30, 2017. They are redeemable by the Corporation on or after September 30, 2015. They were offered at their face value. The Class A and Class B Debenture holders have the right to convert the debentures at the principal amount plus any unpaid accrued interest into the next equity issue of the Corporation. In the event that the issue was offered at a discount to market the Class B Debenture holders are not be entitled to any discount. Conversion of debentures will be conditional to prior TSX Venture Exchange’s approval and the conversion price will be based on market price at the time of conversion.
The Class B Units, including a Class B Debenture substantially identical to the Class A Debenture, were offered exclusively to Alphinat secured lenders (the “Secured Lenders”) who advanced $500,000 (the “Secured Indebtedness”) to the Corporation in October 2011. The Units were offered in the context of a Debt Settlement whereby in consideration of the cancellation of the Secured Indebtedness which bore interest at a substantially higher rate than the Class B Debenture, and the removal of the security for the Secured Indebtedness, the Corporation issued Class B Debentures having a value of 120% of the Secured Indebtedness being settled. The premium was offered in view of the importance of foregoing described benefits to the Corporation. In addition, the Secured Lenders were entitled to receive one Bonus Common Share per dollar of Class B Debenture subscribed, of which 154,761 Bonus Common Shares have been issued at closing and the remaining 198,989 Bonus Common Shares, will be issued only upon approval by the shareholders at a special meeting of the shareholders. In addition, the Secured Lenders were entitled to receive one Bonus Common Share per dollar of Class B Debenture subscribed, of which 154,761 Bonus Common Shares have been issued at closing and the remaining 198,989 Bonus Common Shares were to be issued only upon approval by the shareholders at a special meeting of the shareholders. The annual and special meeting of shareholders was held on February 26, 2014.
At Alphinat, we are driven by the passion to make application development easy for everyone. It always struck us as odd that the people with the vision of how a finished application should look and behave would only be involved at the start of the process. After all, what better way to ensure a favourable outcome than to provide those closest to an application’s end-users with a vested interest in its success throughout its development?
That’s why we bring you new ways to empower the right people at the right time in the application development process. At the same time, we’re constantly working to reduce the need to code in order to make application development and maintenance simpler and less error-prone.
So whether you choose to develop your applications with the help of our low-code platform SmartGuide®, kickstart your project using one of our pre-built apps or engage us or one of our partners to do the work for you, we’re here to help you deploy better applications in record time. Visit http://www.alphinat.com for more information. We look forward to hearing from you.
Certain statements in this document, including those which express management’s expectations or estimations with regard to the Company’s future performance, constitute “forward-looking statements” as understood by applicable securities laws. Forward-looking statements are, of necessity, based on a certain number of estimates and hypotheses; while management considers these to be accurate at the time they are expressed, they are inherently subject to significant uncertainties and risks on the commercial, economic and competitive levels. We advise readers that these forward-looking statements are subject to risks, uncertainties, and other known and unknown factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. A number of factors could cause significant differences between actual results and those described in forward-looking statements. Investors are advised to not rely unduly on the forward-looking statements. This advisory applies to all forward-looking statements, whether expressed orally or in writing, attributed to Alphinat or to any individual expressing them in the name of the Company. Unless required by law, the Company is under no obligation to publicly update these forward-looking statements, whether to reflect new information, future events, or other circumstances. Risks and uncertainties that bear on the Company are described in greater detail in the Company’s Annual Report.