Trakopolis Provides Update on Credit Facility Amendment with ESW Holdings

Trakopolis IoT Corp. (TSXV: TRAK) ("Trakopolis" or the "Company") wishes to provide an update on certain provisions contained in the agreement with ESW Holdings, Inc. ("ESW") amending its US$3.0 million senior secured credit facility (the "Amending Agreement"), as previously announced on August 2, 2019.

The Amending Agreement contemplated that certain milestones must be achieved by Trakopolis.  In particular, the Amending Agreement required the Company, by not later than August 7, 2019, to provide ESW with a financing plan that contemplates full repayment of the senior secured credit facility by not later than September 30, 2019 (subject to extension by ESW).  That financing plan has now been provided to ESW.  It is also a milestone to the Amending Agreement that the Company pursue an equity raise in the aggregate amount of not less than CAD$3.0 million (the "Financing") and make a public announcement with respect to such Financing by no later than August 7, 2019.  The Board of Directors has resolved to move forward with the Financing and has engaged external legal and financial advisors to assist the Company in that regard.  It is currently contemplated that a rights offering to existing shareholders will form one component of the Financing potentially combined with a private placement to existing shareholders and new investors.  Other financing options to augment the Financing are also being considered. 

The Company anticipates making a further disclosure with respect to the terms of the Financing once required stock exchange approvals have been received.  In addition, Trakopolis wishes to advise that the work of the Special Committee noted in our August 2nd press release is on-going.  Other than noted above, Trakopolis does not intend to comment further regarding the Financing or the Special Committee process unless a specific transaction is approved by the Board of Directors of the Company.

About Trakopolis

Trakopolis is a Software-as-a-Service (SaaS) company with proprietary, cloud-based solutions for real-time tracking, data analysis and management of corporate assets such as equipment, devices, vehicles and workers. The Company’s asset management platform works across a variety of networks and devices. Trakopolis has a diversified revenue stream from many verticals including oil and gas, forestry, transportation, construction, rentals, urban services, mining, government and others.

For further information please contact:

Brent Moore, President and Chief Executive Officer
Trakopolis IoT Corp.
Telephone: (403) 450-7854
Email: bmoore@trakopolis.com