Digital Caddies Enters Debt Settlement Agreements With Major Creditors, Sprint Acquires 19% Equity Stake
Gail Chiasson, North American Editor
Scotsdale, Arizona-based Digital Caddies Inc., which delivers on-course technology services and content to golfers, has entered 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 Digital Caddies.
Brad Nightingale, CEO, says, “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 unnamed 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.
“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,” says Nightingale.
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.
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