/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 04/14/16 -- Tellza Communications Inc. (TSX: TEL) announced today that it has completed the acquisition of 33% of Rightway Holdings LLC ("Rightway") from two existing shareholders (the "Vendors") for USD $5.5 Million.

Rightway (http://rightwayfunding.com/) is a US based structured settlements firm which assists its clients, through a court approved process, to convert their structured settlements and lottery winnings into a lump sum payment.

Of the $5.5 Million purchase price payable by Tellza, $2.0 Million will be a direct investment in working capital to enable Rightway to expand its marketing and business development initiatives. The $3.5 Million balance of the purchase price will be payable by Tellza to the Vendors, together with interest at a rate of 1.8% per annum, pursuant to a five year promissory note (the "Note"), subject to extension if not fully repaid at maturity. The Note is repayable from Tellza's 33% portion of profits of Rightway until fully repaid and will be secured by Tellza's investment in Rightway, but shall not be subject to any further recourse.

Tellza's percentage ownership interest in Rightway shall be reduced to 10% if Tellza fails to deliver in full the initial $2.0 Million of purchase price within 120 days of closing. Tellza's ownership interest will increase to 43% if, for any reason, Rightway fails to earn a cumulative $15.2 Million in EBITDA(i) between 2016 to 2018. Rightway earned EBITDA(i) of $0.6 Million in 2014 and EBITDA(i) of $1.2 Million in 2015.

"With the investment in Rightway, Tellza has now made a solid footprint into the Financial Product Support Service Industry. Tellza expects to continue to leverage its cash flows from its Communications business into more Financial Product Support Service businesses," said Gary Clifford, Executive Chairman.

The Company's financial statements and other disclosures are available on SEDAR.

The Company's corporate profile is located at www.tellza/investors.

About Tellza

Tellza is a Technology Company operating in the Communication market. The business is organized into three business units: Tellza Communications, Tellza Technologies and Tellza Investments. Tellza Communications is a global communications company operating under several brands: Route Dynamix, Phonetime, Tel3, and MatchcoM. Tellza Technologies provides real time big data management tools for the telecommunications market. Tellza Investments seeks portfolio investment opportunities in various market places. Tellza is a public company listed on the Toronto Stock Exchange (TEL).

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Tellza's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See www.sedar.com which contains all securities files.

(i)We define EBITDA and Cas h Profits as earnings before taxes, depreciation and amortization, stock based compensation, and interest. EBITDA, which is a non-GAAP financial measure, it is a standard measure used in the telecommunications industry to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meaning under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating as such measures may differ among companies and analysts.

Contacts:
Tellza Communications Inc.
Gary Clifford
Executive Chairman
+647 281 1831
gclifford@tellza.com

Tellza Communications Inc.
Michael Vazquez
Chief Executive Officer
+954 608 5058
mike@tellza.com