DPW Holdings Eliminates Debt Totaling Approximately $2 Million
August 28 2019 - 6:45AM
Business Wire
Company Repays or Restructures Debt to Date for 2019 Totaling
$14.8 Million
DPW Holdings, Inc. (NYSE American: DPW), a diversified holding
company (“DPW,” or the “Company”), announced that it
has eliminated debt totaling approximately $2 million from two
separate exchange agreements with two creditors. As previously
announced in early July 2019, the Company restructured debt by
issuing new convertible debt in the principal amount of
approximately $2.7 million. During 2019, the principal amount of
debt that DPW has either eliminated or restructured exceeds $14.8
million.
On July 3, 2019, the Company entered into an exchange agreement
with an institutional investor pursuant to which, in exchange for
the surrender of that certain term promissory note issued by the
Company to the investor on March 23, 2018, the Company issued to
the investor a convertible promissory note in the principal amount
of $1,492,000 with an interest rate of 12% per annum and a maturity
date of January 22, 2020. The new note is convertible into shares
of the Company’s common stock at a conversion price equal to $8.80.
To date, the investor has converted an aggregate principal amount
of $860,000 of this note.
The Company entered into another exchange agreement on July 2,
2019 with another investor pursuant to which, in exchange for the
surrender of certain debt instruments held by this investor, the
Company issued to the investor a convertible promissory note in the
principal amount of $1,250,000 with an interest rate of 8% per
annum and a maturity date of December 31, 2019. The new note is
convertible into shares of the Company’s common stock at a
conversion price equal to $8.80 per share, subject to a floor of
$4.00. To date, the investor has converted an aggregate principal
amount of $1,250,000 of this note, though the Company remains
indebted to this investor in the approximate amount of
$100,000.
DPW’s CEO and Chairman, Milton “Todd” Ault, III said, “The
elimination of this debt is a milestone for the Company as we
continue to improve our capital structure to one with a long-term
timeline that supports our corporate initiatives and goals. We have
worked very hard to reduce the debt we incurred in conjunction with
our acquisitions and expansion activities.” Ault added. “With the
progress we have made to address our debt issues, the Company can
focus on being a holding company that has sales and earnings
power.”
The Company 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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