Optiva secures C$30m in financing from OceanLink

Optiva, a Toronto-based software solutions provider to communications services companies, has raised C$30 million in financing.

Optiva, a Toronto-based software solutions provider to communications services companies, has raised C$30 million in financing. OceanLink Management made the investment through the purchase of subordinate voting shares. Optiva is also backed by EdgePoint Investment Group, ESW Capital and Maple Rock Capital Partner.

PRESS RELEASE

TORONTO, Nov. 10, 2020 /CNW/ – Optiva Inc. (“Optiva” or the “Company”) (TSX: OPT), the leader in providing communications service providers (CSPs) worldwide with cloud-native revenue management software on the public cloud, is pleased to announce that OceanLink Management Ltd. (“OceanLink”), for and on behalf of certain managed funds, has agreed to make a CDN$30 million investment in Optiva through the purchase of subordinate voting shares of the Company (the “Shares”) on a private placement basis (the “Investment”).

Optiva intends to use the proceeds from the Investment to fund strategic roadmap investments and to further transform its BSS products to be cloud native and work on private and public cloud. The funds will allow Optiva to address market need and meet its customers demands for its modernized solutions.

“This investment in Optiva underscores our confidence in Optiva’s business fundamentals,” said Robert Stabile, Chairman of the Board of Optiva. “We are excited to have the support of OceanLink, and we are confident that this investment will allow us to accelerate our product roadmap as well as support our customers in their cloud and digital journey.”

Summary of the Investment
Key terms of the Investment include:
OceanLink has agreed to purchase 750,000 Shares at a purchase price of CDN$40.00 per Share for gross proceeds to Optiva of CDN$30 million.
Immediately following completion of the Investment (the “Closing”), OceanLink will exercise control or direction over approximately 12.4% of the issued and outstanding Shares.

In connection with the Investment, the Company and OceanLink will enter into an investor rights agreement, providing for, among other things, participation rights in certain future securities offerings for a period of 12 months following Closing and the right to nominate one director to the Board of Directors of Optiva, in each case, for so long as OceanLink beneficially owns, or exercises control or direction over, at least 9% of the issued and outstanding Shares.

Additional information regarding the Investment is included in the subscription agreement dated as of the date hereof between the Company and OceanLink, for and on behalf of certain managed funds, in respect of the Investment (the “Subscription Agreement”), which will be filed by Optiva on the Company’s SEDAR profile at www.sedar.com.

The Closing of the Investment is subject to the satisfaction of customary closing conditions, including the receipt of Toronto Stock Exchange approval. Until December 15, 2020, the Closing is also conditional upon the pending Court decision in the previously announced legal proceedings that were brought by ESW Capital, LLC (“ESW”) challenging the Company’s July 2020 preferred share redemption and debenture financing not reversing those transactions. This press release is only a summary of certain principal terms of the Investment and is qualified in its entirety by reference to the more detailed information contained in the Subscription Agreement.

Additional Early Warning Disclosure of OceanLink
Immediately prior to the Investment, OceanLink did not have beneficial ownership of, or control or direction over, any securities of the Company. Immediately following Closing, assuming that no convertible, exercisable or exchangeable securities of the Company are converted into, exercised or exchanged for Shares prior to the Closing, OceanLink will have ownership of, or control or direction over, 750,000 Shares, representing approximately 12.4% of the issued and outstanding Shares.

OceanLink is making the Investment for investment purposes. OceanLink has no current plan or future intentions to acquire additional securities of the Company or dispose of securities of the Company. Depending on market conditions and other factors, including OceanLink’s view of the Company’s prospects, business and financial condition, OceanLink may acquire additional securities of the Company from time to time in the future, in the open market or pursuant to privately negotiated transactions, or may sell all or a portion of its securities of the Company.

An early warning report with additional information in respect of the foregoing matters will be filed and made available on the Company’s SEDAR profile at www.sedar.com. For further information or to obtain a copy of the early warning report, please see the Company’s profile on SEDAR at www.sedar.com or contact Lan Zhang, Chief Financial Officer of OceanLink, at 437-249-0202.

About Optiva Inc.
Optiva Inc. is a global leader in providing CSPs with cloud-native revenue management software on the public cloud. CSP operators and mobile virtual network operators can integrate our best-of-breed charging engine into a BSS stack or deploy our fully managed, end-to-end, SaaS-based suite. Optiva solutions offer unmatched speed, scale, security and savings. Our market knowledge, analytical insights and unique Customer Success Program ensure telecoms are equipped to achieve their strategic business goals. Established in 1999, Optiva Inc. is on the Toronto Stock Exchange (TSX: OPT). For more information, visit www.optiva.com.