Sole customer sends termination notice to CDialogues

The future of CDialogues was hanging in the balance on Friday, as the AIM-traded company announced it has received a notice of termination from Numbase in respect of the four contracts from which it generates all of its current revenues.

CDialogues’ board said it 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 and Touch in Lebanon, and Zain and VIVA in Kuwait.

“CDialogues is in discussion with Numbase in respect of the notice of termination, in order to seek alternative outcomes,” the board said in a statement.

“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.”

CDialogues’ board said that in light of the termination, and recent difficulties including tough market conditions, it has decided to review its business and assets.

It said the group currently has a strong cash position and no debt.

The board said it will consider all options to seek to mitigate losses, sustain cash balances to the greatest extent possible and preserve shareholder value.