NEW YORK, Dec. 17, 2019 /PRNewswire/ -- Pareteum
Corporation (Nasdaq: TEUM), a rapidly growing cloud
communications platform company, today announced an offering of up
to 255 shares of non-convertible 8% Series C Redeemable Preferred
Stock for an aggregate purchase price of up to $20.0 million. The Company expects to receive
approximately $5.0 million in gross
proceeds from the initial closing rounds, which are expected to be
completed by December 20, 2019.
Under the agreement, the Company may raise up to an additional
$15.0 million in gross proceeds at a
purchase price of $100,000 per share.
The Company intends to use the net proceeds for working capital,
general corporate purposes and growth initiatives.
"We are pleased to complete this financing as it responsibly
strengthens our balance sheet and provides capital to execute on
our growth strategy," said Mary Beth
Vitale, Interim Chairman of Pareteum. "We remain focused on
operating the business and delivering outstanding results for our
customers. Our unique products and technology offerings continue to
drive strong customer demand and we are well positioned to
capitalize on a large and rapidly growing market opportunity."
Hoving & Partners S.A., a long-time financial supporter of
Pareteum, acted as the investor in the offering, showing confidence
in Pareteum, its capabilities and the opportunity ahead.
More information regarding the financing may be found on Form
8-K dated December 16, 2019 on file
with the Securities and Exchange Commission.
About Pareteum Corporation:
Millions of people and
devices are connected around the world using Pareteum's Global
Cloud Communications Platform, enhancing their mobile experience.
Pareteum unleashes the power of applications and mobile services,
bringing secure, ubiquitous, scalable, and seamlessly available
voice, video, SMS/text messaging, and data, media and content
enablement to our customers, making worldwide communications
services easily and economically accessible to everyone. By
harnessing the value of our cloud communications platform, Pareteum
serves enterprises, communications service providers, early stage
innovators, developers, IoT, and telecommunications infrastructure
providers. Pareteum envisions a new mobile communications
experience, imagining what is to come, while delivering now.
Pareteum currently has offices in North
America, South America,
Spain, Bahrain, Singapore, India, Indonesia, Germany, Belgium, United
Kingdom, Russia, and
the Netherlands. For more
information please visit: www.pareteum.com.
Forward Looking Statements: Certain statements contained
herein constitute "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995. Such statements
may include, without limitation, statements with respect to
Pareteum's plans and objectives, projections, expectations and
intentions. These forward-looking statements are based on current
expectations, estimates and projections about Pareteum's industry,
management's beliefs and certain assumptions made by management.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict.
Because such statements involve risks and uncertainties, the actual
results and performance of Pareteum may differ materially from the
results expressed or implied by such forward-looking statements.
These risks include, among other things (1) the Company's ability
to complete the offering as described herein, (2) the ability to
complete the restatement of the affected financial statements and
address any material weaknesses, the timing of the completion of
necessary restatements, interim reviews and audits by the Company's
independent registered public accounting firm, (3) risks relating
to the substantial costs and diversion of personnel's attention and
resources deployed to address the restatement of the affected
financial statements and internal control matters, (4) the
risk of litigation or regulatory action arising from the
restatement of the affected financial statements, (5) the timing of
the review by, and the conclusions of, the Company's independent
auditor regarding the restatement, (6) the ability of the Company
to remediate any material weaknesses in internal control over
financial reporting, (7) potential reputational damage that the
Company may suffer as a result of the restatement of the affected
financial statements, (8) the impact of the restatement of the
affected financial statements on the value of the Company's common
stock, and (9) the risk that the filing of the restatement of the
affected financial statements will take longer than anticipated.
Given these risks and uncertainties, readers are cautioned not to
place undue reliance on such forward-looking statements. Unless
otherwise required by law, Pareteum also disclaims any obligation
to update its view of any such risks or uncertainties or to
announce publicly the result of any revisions to the
forward-looking statements made here. Additional information
concerning certain risks and uncertainties that could cause actual
results to differ materially from those projected or suggested in
Pareteum's filings with the Securities and Exchange Commission,
copies of which are available from the SEC or may be obtained upon
request from Pareteum Corporation.
Media Inquiries:
Press@pareteum.com
Investor Relations Contact:
+1 646-810-2182
Investor.relations@pareteum.com
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SOURCE Pareteum Corporation