DALLAS, Jan. 10,
2023 /PRNewswire/ -- COMSovereign Holding Corp.
(NASDAQ: COMS) ("COMSovereign" or the "Company"), a U.S.-based
developer of 4G LTE Advanced and 5G Communication Systems and
Solutions today issued the following CEO Update Letter:
To Our COMSovereign Stakeholders:
As we enter the New Year, I wanted to write to you regarding the
progress our team has made against a few of the critical path items
I outlined in my last CEO update and touch upon some of the
important issues for our shareholders.
Since I last wrote to you, I have committed to become
COMSovereign's CEO and President. My decision was based upon
several factors, foremost amongst them being the quality of the
team, the strength of the Company's technology, and the tremendous
opportunities I see ahead. As I also stated, there are challenges
we face as we address the organizational and financial issues that
have limited the Company's ability to capitalize on both its
existing book of business and the exciting future of 5G and
wireless connectivity. It is against these challenges that we have
made notable progress, highlighted by:
- Progress on Completing Our Quarterly Filings – On
December 15, 2022, we successfully
filed our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2022. The team, with
support of external resources which have expertise and experience
in SEC reporting as well as assisting companies with their
delinquent filings, are making progress against the critical
milestones included in our plan approved by the NASDAQ Panel for
our second and third quarter reports.
- Streamlining The Business – As I have previously spoken
about, central to our ongoing business transition is the refocusing
and streamlining of the business. The goal of this effort is to
reduce costs, generate revenue and maximize their value of the
Company's assets. We continue to make important strides across our
operations including significantly reduced headcount through the
elimination of redundancies. Furthermore, we announced the pending
sale of our Israeli Sky Sapience Drone unit ("SKS") for total
consideration of $1.8
million and most recently, the disposition of RVision,
Inc. The sale of SKS, expected to close before mid-March,
eliminates associated expenses and debt, while significantly
simplifying our organizational structure by removing the complexity
of its international operations while the RVision transaction
furthers our refocusing efforts. We continue to explore ways to
maximize the value and potential of our other non-communications
assets and look forward to providing updates on future developments
here as they occur.
- Improving the Balance Sheet – One critical area we
needed to address was to substantially reduce the debt on our
balance sheet. We have made significant progress reducing the debt
over the past few quarters. This is important for several reasons
including compliance with Nasdaq financial requirements and
providing us with added flexibility to fund operations as we seek
to increase production of our DragonWave and Fastback contract
manufacturing lines and invest into our Saguna mobile edge compute
("MEC") solution. With sufficient funding, we do plan to augment
the team and hire for key positions to better support these
solutions as we move ahead.
That brings me to how we are approaching the start of the New
Year and things I believe are critical to our short- and
longer-term ability to execute against our plans.
- Urgent Shareholder Voting at Our Upcoming 2023 Annual
Meeting – On January 18, 2023,
COMSovereign will hold its annual shareholder meeting. At this
meeting, we want to remind you to vote on a series of
critical proposals including:
-
- Approval to affect a reverse stock split of our outstanding
common stock enabling the Company to meet Nasdaq's minimum
bid requirement. Without this reverse split, the Company will not
be able to maintain its listing on Nasdaq.
- We are requesting Shareholders approve the replenishment of the
Long-Term Incentive Plan ("LTIP") with the addition of 30,000,000
shares, which is on a pre-reverse split basis. If approved, the
replenishment of the LTIP would be adjusted in-line with existing
common stock if the proposed reverse split is also approved.
This is a critical shareholder vote which will enable the Company
to attract new talent and retain employees while aligning their
long-term interests with that of all current shareholders.
- Vote the proposed Board of Directors (Richard Berman, Kay
Kapoor, James Marks, and
David Knight)
- Ratify our auditors, Marcum LLP.
- Customers, Partners, and the Opportunities – One of the
greatest assets of COMSovereign remains its network of global
customers and partners, an area we are committed to supporting and
growing. Our team remains engaged with these key stakeholders as we
continue to meet their current requirements as well as working to
support them with their needs over the medium and longer term. To
that end, we are actively working on several exciting new 5G
relationships in both commercial and academic markets which we
anticipate announcing in the coming weeks. Finally, as technology
and the end-use markets evolve, we see an ever-increasing interest,
and need, for more secure, resilient, and adaptable platforms. As
such, our approach here is tap into our legacy of innovation as we
adapt our current technologies and capabilities to meet our
customer's needs today while continuing to develop solutions that
can uniquely address entirely new industries and end user markets
of tomorrow.
- Tapping into a Legacy of Innovation and Our Global Brand
– The companies and products acquired by COMSovereign have a
history of innovation, some extending back nearly 20 years to the
beginning of modern wireless networks. This legacy has produced
deep and broad patent portfolios and brands that are well-known by
customers and partners around the globe - in North America, Europe, Mideast, Asia, and Latin
America. As part of our transition efforts, we are
constantly reviewing the business to determine which brand
resonates with customers, partners, and prospective employees. We
intend to build upon this legacy of innovation as we seek to
integrate the capabilities of the acquired companies while
providing more balance between software, Software-as-a-Service, and
required services with our hardware products. In my view, this is a
fundamental step needed to guide the future of our Company, one
that am I excited to continue implementing throughout the
year.
Before I close this letter, I would like to again remind our
shareholders to vote at the Annual Meeting of Stockholders to be
held on January 18, 2023. Included in
the voting, we request that our shareholders vote for the reverse
split which is required to maintain our Nasdaq listing and for the
replenishment of the Long-Term Incentive Plan ("LTIP"). These are
necessary elements in our go-forward plan for COMSovereign. Please
see our Definitive Proxy Statement for more information.
Finally, I wish to recognize the efforts and dedication of our
employees. We have an incredibly smart and talented team that
have remained focused on developing new technology and serving our
customers and partners every day. Their efforts would not be
possible if it were not for their deep knowledge of our
technologies and the markets we are in, and importantly, the
markets we intend to enter. We continue to benefit from their daily
contributions and connections as they tell our exciting story. As a
result, I believe that our customers and partners are beginning to
recognize the vision we have for COMSovereign and are encouraged by
the progress we are making in our transition and efforts to build a
roadmap based on our legacy of innovation. As a team, we are
focused on our future and are committed to the execution against
our plan.
Sincerely,
David Knight
Chief Executive Officer and President
About COMSovereign Holding
Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a
portfolio of communications technology companies that enhance
connectivity across the entire data transmission spectrum. Through
strategic acquisitions and organic research and development
efforts, COMSovereign has become a U.S.-based communications
provider able to provide 4G LTE Advanced and 5G telecom solutions
to network operators and enterprises. For more information about
COMSovereign, please visit www.COMSovereign.com.
Forward-Looking
Statements
Certain statements in this press release that are not historical
facts are forward-looking statements that reflect management's
current expectations, assumptions, and estimates of future
performance and economic conditions, and involve risks and
uncertainties that could cause actual results to differ materially
from those anticipated by the statements made herein.
Forward-looking statements are generally identifiable by the use of
forward-looking terminology such as "believe," "expects," "may,"
"looks to," "will," "should," "plan," "intend," "on condition,"
"target," "see," "potential," "estimates," "preliminary," or
"anticipates" or the negative thereof or comparable terminology, or
by discussion of strategy or goals or other future events,
circumstances, or effects. Moreover, forward-looking statements in
this release include, but are not limited to the ability to develop
and deliver advanced voice and data communications systems, address
supply chain challenges including securing adequate inventory of
necessary components, demand for the Company's products, the
ability of the Company to regain compliance with Nasdaq listing
requirements, its ability to file its financial reports in a timely
manner, and secure additional funding. Further information relating
to factors that may impact the Company's results and
forward-looking statements are disclosed in the Company's filings
with the SEC. The forward-looking statements contained in this
press release are made as of the date of this press release, and
the Company disclaims any intention or obligation, other than
imposed by law, to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Contacts:
Steve Gersten, Director of
Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com
and
Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
View original content to download
multimedia:https://www.prnewswire.com/news-releases/comsovereign-issues-new-year-ceo-update-letter-301717430.html
SOURCE COMSovereign Holding Corp.