AirIQ Inc. Amends Credit Facility
PICKERING, ONTARIO – January 31, 2006 – AirIQ Inc. (“AirIQ”) (TSX: IQ), a leader in global wireless security specializing in Telematics services, announced today that it and its lender have entered into an agreement which amends AirIQ’s credit facility. The agreement includes a change in the commitment under the facility to $7.25 million and a corresponding reduction in standby fees payable by AirIQ to its lender. The lender also waived the Company’s earlier reported non-compliance with two covenants in the original credit facility. The Company has delivered revised financial benchmarks to the lender and such benchmarks will be used under the amended facility to more appropriately measure compliance going forward. All other terms are substantially unchanged.
“The Company hit a peak working capital requirement due to a major product transition,” says Mark Kohler, Chief Financial Officer of AirIQ. “This required the purchasing of dual inventories for a period of time, and with the strong product demand recently experienced, the working capital position is improving to a more normalized level.”
AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in global wireless security, AirIQ is headquartered in Pickering, near Toronto, Canada, with offices in Lake Forest and San Diego, California, U.S.A. The Company operates as a wireless Internet applications service provider specializing in Telematics. Telematics is the name given to information and control messages sent wirelessly to and from vehicles and vessels. AirIQ’s services are offered to five primary markets: Commercial Fleets; Consumer; Vehicle Finance; Indirect Distribution; and Marine Fleets. AirIQ gives vehicle and vessel owners the abilities to manage and protect their mobile assets. AirIQ’s services include: vehicle locating, boundary notification, automated inventory, maintenance reminders, security alerts, vehicle disabling, unauthorized movement alerts and many more features. For additional information on AirIQ, its products and services, please visit the Company’s website at www.airiq.com.
This news release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking statements.
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- Mary Catherine Telemaque
- Manager, Corporate Communications
- AirIQ Inc.
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