DPW Holdings Enters into Exchange Agreement for Debt
July 08 2019 - 6:45AM
Business Wire
Company Announces that Restructured Debt to Date for 2019
Totals $15.8M
DPW Holdings, Inc. (NYSE American: DPW), a diversified holding
company (“DPW,” or the “Company”), announced that it
has entered into an exchange agreement with a creditor for debt
previously in default for $1,000,000. The Company restructured the
debt by issuing new convertible debt in the principal amount of
$1,492,000.00. To date, the principal amount of debt that DPW has
either eliminated or restructured for the year presently exceeds
$15.8M.
On July 5, 2019, the Company entered into an exchange agreement
with an institutional investor pursuant to which, in exchange for
the surrender of that certain 12% Promissory Note in the principal
amount of $1,000,000 at a 10% original issue discount originally
issued pursuant to a Securities Purchase Agreement dated March 23,
2018, the Company issued to the investor a new Convertible
Promissory Note in the principal amount of $1,292,000.00 plus a
default premium of $200,000.00, for an aggregate of $1,492,000 with
an interest rate of 12% per annum and a maturity date of January
22, 2020. Subject to the approval by the NYSE American, the new
note will be convertible into shares of the Company’s common stock
at a conversion price equal to $0.22.
From the Company’s perspective, the most prominent aspect of
this agreement is the exchange of non-convertible debt for
convertible debt, thus enabling the investor, at its election, to
reduce the debt owed to it by the Company through the conversion of
the principal and accrued interest of its debt instruments into
shares of the Company’s common stock, which would obviate the
requirement for the Company to repay such dollar amount in
cash.
DPW’s CEO and Chairman, Milton “Todd” Ault, III said, “We are
very pleased we were able to work with this lender to resolve our
liabilities and cure any default at hand. With this transaction,
DPW has now either restructured or reduced over $15.8M in
short-term debt, has completed restructuring nearly all of the
Company’s short-term debt and looks forward in the current quarter
to repaying the remaining outstanding balance of under $500,000. We
are very excited to reach what we deem as a milestone for DPW with
our short-term capital completely restructured and look forward to
accelerate our progress for 2019 while remaining dedicated to
increasing revenue growth and sources, improving our bottom-line
results and attaining our other stated goals for the fiscal year.
We once again thank our creditors for working with us as we strive
to improve our capital structure.”
The Company recommends that stockholders and other interested
parties read the Form 8-K filings filed with the SEC on July 5,
2019 for terms and other details pertaining to each transaction.
For more general information on the Company, DPW recommends that
stockholders, investors and any other interested parties read the
Company’s public filings and press releases available on its
website at www.DPWHoldings.com under the Investor Relations section
or available at www.sec.gov.
About DPW Holdings, Inc.
DPW Holdings, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly owned
subsidiaries and strategic investments, the Company provides
mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial,
telecommunications, medical, crypto-mining, and textiles. In
addition, the Company owns a select portfolio of commercial
hospitality properties and extends credit to select entrepreneurial
businesses through a licensed lending subsidiary. DPW’s
headquarters are located at 201 Shipyard Way, Suite E, Newport
Beach, CA 92663; www.DPWHoldings.com.
Forward-Looking Statements
This press release contains “forward looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on
the Company’s website at www.DPWHoldings.com.
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