CDOG Cdialogues

TIDMCDOG

RNS Number : 4807B

CDialogues PLC

17 June 2016

17 June 2016

CDialogues plc

("CDialogues", the "Company" or the "Group")

Termination of contracts and initiation of business review

CDialogues 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       Tel: 0203 328 5656 
  Limited 
 David Hart 
 Alex Brearley 
 
 Walbrook PR           Tel: 020 7933 8780/ cdialogues@walbrookpr.com 
  Ltd 
 Paul Cornelius        Mob: 07866 384 707 
 Nick Rome             Mob: 07748 325 236 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 17, 2016 02:00 ET (06:00 GMT)

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