CRI Restructures Debt to Increase Liquidity, Position Company for Future Growth

Rhea-AI Summary

Creative Realities, Inc. (NASDAQ: CREX) announced a restructuring of its debt to enhance liquidity and support future growth initiatives. Key actions include eliminating a three times liquidation preference on a loan, increasing liquidity by $1 million through a new credit facility, and extending debt maturity from June 30, 2021, to March 31, 2023. Additionally, the company plans to reduce outstanding debt by converting it into common stock based on a recent market price. CEO Rick Mills expressed confidence in pursuing growth opportunities as the market recovers from the COVID-19 pandemic.

Positive

• Restructuring of debt provides increased liquidity of $1 million.
• Maturity extension of debt facilities to March 31, 2023 enhances financial flexibility.
• Elimination of liquidation preference on loans improves capital structure.

Negative

• None.

LOUISVILLE, Ky., March 8, 2021 /PRNewswire/ -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (NASDAQ: CREX, CREXW), a leading provider of digital marketing solutions, today announced that it has entered into an Amended and Restated Credit Agreement with the lender under its credit facility pursuant to which the parties agreed to take certain actions to restructure CRI's outstanding indebtedness to improve CRI's capital structure and create flexibility to manage potential significant upcoming projects by:

• eliminating the three times liquidation preference upon conversion of the Company's Secured Convertible Special Loan Promissory Note;
• providing increased liquidity via $1.0 million of incremental availability under the new Multi-Advance Line of Credit facility;
• extending the maturity date of the Company's debt facilities from June 30, 2021 to March 31, 2023; and
• reducing outstanding debt via conversion of the Secured Disbursed Escrow Promissory Note into the Company's common stock at the ten-day volume weighted average price as of the close of market on March 5, 2021.

"As the digital out-of-home industry emerges from the ongoing COVID-19 pandemic, we're positioning the Company financially to aggressively pursue important growth opportunities," said Rick Mills, CEO of CRI. "We believe that the additional $1.0M in available liquidity, when combined with the elimination of the three times liquidation preference on our Special Loan and the extension of all debt instruments to March 31, 2023 generates continued forward momentum and flexibility for our team to continue our relentless focus on growing our business and creating shareholder value."

Mr. Mills continued, "Restructuring the Company's debt to more favorable terms is another step in positioning CRI to take advantage of opportunities that we are seeing emerge in the marketplace as governments ease restrictions and closures associated with the COVID-19 pandemic. We believe CRI now has ample runway and access to capital to support our strategic investments towards becoming a key enterprise provider in the digital signage industry."

To learn more about Creative Realities, visit https://cri.com/.

About Creative Realities, Inc.
Creative Realities helps clients use the latest omnichannel technologies to inspire better customer experiences. CRI designs, develops and deploys consumer experiences for high-end enterprise level networks, and is actively providing recurring SaaS and support services across more than fifteen diverse vertical markets, including but not limited to Automotive, Advertising Networks, Apparel & Accessories, Convenience Stores, Foodservice/QSR, Gaming, Theater, and Stadium Venues. The Company operates primarily throughout North America and has active contracts in more than 10 countries.

Cautionary Note on Forward-Looking Statements
This press release contains certain statements that are "forward-looking statements" under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and includes, among other things, discussions of our business strategies, future operations and capital resources.  Words such as "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

Given these uncertainties, and the fact that forward-looking statements represent management's estimates and assumption as of the date of this press release, you should not attribute undue certainty to these forward-looking statements.  We assume no obligation to update any forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in any forward-looking statements contained in this press release, even if new information becomes available in the future.

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SOURCE Creative Realities, Inc.

FAQ

What recent financial changes did Creative Realities (CREX) announce?

Creative Realities announced a debt restructuring, increasing liquidity by $1 million and extending debt maturity to March 31, 2023.

What is the impact of the debt restructuring on Creative Realities' operations?

The restructuring is expected to improve financial flexibility, enabling the company to pursue growth opportunities as the market recovers from COVID-19.

How will Creative Realities reduce its outstanding debt?

The company plans to convert the Secured Disbursed Escrow Promissory Note into common stock at a recent market price.

What are the future plans for Creative Realities after the debt restructuring?

Creative Realities aims to leverage its improved financial position to become a key player in the digital signage industry.