17th Jun 2016 06:32
LONDON (Alliance News) - Mobile marketing company CDialogues PLC on Friday said it has initiated a review of its business and assets after it received notice that the contracts it holds with telecommunications services firm Numbase Ltd, from which it generates all its current revenue, will be terminated.
CDialogues has been providing mobile marketing and campaign services via Numbase to mobile companies in Lebanon and Kuwait, under two contracts in each of the countries.
Numbase has now said it will terminate the deals and CDialogues said it is holding talks with Numbase to try and seek alternative outcomes. The four deals have different termination terms, but CDialogues said it anticipates all the deal will have been cancelled by the end of September, at the latest, should the plans proceed.
Due to the termination and recent trading difficulties, CDialogues said it has initiated a strategic review and will "consider all options to seek to mitigate losses, sustain the group's cash balances to the greatest extent possible and preserve shareholder value."
By Sam Unsted; [email protected]; @SamUAtAlliance
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