[ACCESSWIRE]
Finalized Agreement Will Result in Sprint Aquiring a 19% Equity Stake
SCOTTSDALE, AZ / ACCESSWIRE / December 21, 2015 / Digital Caddies, Inc. (PINKSHEETS: CADY), a leader in on course delivery of technology services and content to golfers, is pleased to announce the entry into a debt settlement agreement with Sprint, a major creditor, resolving the Company's current debt obligations to Sprint. The debt settlement agreement is subject to certain terms and conditions that the Company expects to finalize in the near future, including entering into a sales and marketing agreement with Sprint and obtaining adequate financing for its ongoing operations. The result of the finalized agreement will result in Sprint acquiring a 19% equity stake in the Company.
"We are excited to announce that we have entered into a resolution with our major creditors and that Sprint has elected to take a 19% equity stake in the company," said Brad Nightingale, CEO. "Sprint will now be working much closer with us and we have established a relationship whereby Sprint will provide human and operational resources to benefit the growth of Digital Caddies' network."
In addition to entering into the debt settlement agreement with Sprint, the Company has finalized agreements with other major creditors subject to certain terms and conditions which, between Sprint and such other major creditors, will eliminate a total of over $7M of debt and obligations.
With these agreements now in place, the Company will now focus its efforts on generating revenue from local advertisers. By taking this approach, the Company should be able to generate immediate advertising sales on the golf courses that are currently using the Company's system and, with thousands of tablets already available in inventory, any new golf course that installs the system will be accretive to cash-flow.
Brad Nightingale also said, "The local advertising market has always represented a great opportunity for Digital Caddies as it typically commands the highest rates in the industry and with many established sales channels in this marketplace, we believe we will be able to establish partnerships to efficiently address this market"
In addition, new programs being introduced by Digital Caddies will also provide golf courses the opportunity to generate additional revenue by referring and selling local advertising on their golf course to local and regional businesses. This approach makes the addition of the Digital Caddies Players Network to a golf course a new revenue stream for them that did not exist with the system in the past.
About Digital Caddies
The Digital Caddies' Players Network provides unique access to golfers via an interactive tablet mounted in golf cars, serving up features golfers, course operators and advertisers want. Once a golf course is equipped with Digital Caddies' touch-screen tablets, golfers enjoy a variety of useful applications and services, including GPS-based course navigation and aerial fairway and green views with accurate yardages to landmarks. Digital Caddies' tablets install easily on golf cars and connect wirelessly to the Web through the Nationwide Sprint Network, providing the golf course a broad portfolio of real-time course management tools via GPS-based cart tracking and communications.
Digital Caddies is committed to ongoing innovation that will deliver valuable content to golfers, enhance golf course operations and allow marketers to reach one of the most sought-after and lucrative demographics. For more information about Digital Caddies, please visit www.digitalcaddies.net.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Digital Caddies, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may,' "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Digital Caddies, Inc.'s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Digital Caddies, Inc.'s filings with the Securities and Exchange Commission.
Investor Contact: Mike Kordysz [email protected]
SOURCE: DigitalCaddies, Inc.
