SinglePoint Inc Restructures Millions in Liability by Restructuring Toxic Debt
October 21 2020 - 8:30AM
InvestorsHub NewsWire
Phoenix, AZ -- October 21, 2020 --
InvestorsHub NewsWire -- SinglePoint Inc. (OTC:SING) announces
the Company has restructured two current secured convertible
promissory notes (the “Notes”) which eliminated a large portion of
its existing debt on its balance sheet. Pursuant to the Amendment,
the Lenders agreed to refrain from
making any conversion under the Notes subject to the terms,
amendments, conditions and understandings expressed in the
Amendment, extended the maturity date,
provided monthly cash payment terms, and removed the toxic
derivative debt on the Company’s balance sheet. The Agreement outlines a comprehensive restructuring
that improves the Company’s balance
sheet.
“The restructuring of these notes
are a significant achievement for the Company, and we are thankful
that our existing lenders agreed that a restructuring would benefit
the Company and its growth initiatives. The restructuring improves
our balance sheet and was one of the critical next steps in our
strategic plan as we continue working towards uplisting to a
national exchange. Since the filing of our Form 8-K with the SEC
last week we have already received increased inquiries by larger
mid-tier firms that understand the value of the restructuring the
payments of the existing toxic debt into a long-term structure, and
we are optimistic for support of SinglePoint’s growth initiatives
in Solar”, states CEO Greg Lambrecht. “We believe that the amendment of these notes is a
pivotal accomplishment and that our current market cap does not
accurately reflect the value of the Company and the emerging
opportunity in
solar.”
As a
result of the of the Amendment to the Notes dated October 12,
2020:
- The
Company reclassified approximately $2,000,000 of principal due
under the Notes from current liabilities to long-term liabilities.
The conversion feature on the combined principal and interest
(approximately $3,0000,000) was restricted, eliminating the
derivative liability associated with this debt and significantly
reducing the Company’s total derivative liability (the Company’s
total derivative liability was $3,895,484 as of June 30,
2020).
SinglePoint management believes that this
restructuring will open up the Company to accretive growth capital
that will enable the Company to facilitate and close additional
acquisitions in the solar and renewable energy sector that have a
historical revenue base and operational profitability which should
increase shareholder
value.
The
combination of the U.S. residential rooftop and commercial solar
market presents a massive opportunity for SinglePoint Inc. and
Direct Solar of America. The Company has recently
launched its installer acquisition and partnership strategy,
leveraging its acquisition of Direct Solar of America, to create a
National Solar Network focused on residential and small commercial
solar installations. It is currently estimated that only
3% to 4% of the 84 million eligible homes across the U.S. have
rooftop
panels.
Commercial Solar – projects built on businesses,
schools, and government buildings present an emerging opportunity
for SinglePoint shareholders in 2020 and beyond. About
3.5% of all commercial buildings have solar and another 1% can be
accounted for through community solar subscriptions, where
customers buy power from a solar project located in the same
utility territory. The addressable market for Commercial Solar
equates to approximately 70% of Commercial Buildings in the
U.S.
Solar
has seen a massive increase in growth over the past years and is
projected to continue this growth over the next decade which has
been labeled as the Solar+ decade. As recently as last week we have
seen the consolidation of Sunrun and Vivint Solar, two of the
largest solar companies in the sector. According to Allied Market
Research, “The
global solar energy market was valued at $52.5 billion in 2018 and
is projected to reach $223.3 billion by 2026, growing at a CAGR of
20.5% from 2019 to
2026.”
We
believe that our acquisition of Direct Solar of America was well
timed and anticipate continued revenue growth and increased market
share gains as they recently have expanded to cover 38 states,
adding and 30+ states in the last 12 months. The company
will continue to capture market share and grow its national sales
and installer footprint as evidenced by its recent announcements of
partnerships with Standard Eco and Stellar
Solar.
About SinglePoint
Inc.
SinglePoint Inc. (OTC:SING) is a
fully reporting company with core holdings in Solar Energy
Services. Learn More at
www.singlepoint.com
Connect on social media
at:
https://www.facebook.com/singlepointsing
https://twitter.com/_SinglePoint
https://www.linkedin.com/company/singlepoint
https://www.youtube.com/user/SinglePointMobile
For more information visit:
www.SinglePoint.com
Forward-Looking
Statements
Certain statements in this news
release may contain forward-looking information within the meaning
of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under
the Securities Exchange Act of 1934, and are subject to the safe
harbor created by those rules. All statements, other than
statements of fact, included in this release, including, without
limitation, statements regarding potential future plans and
objectives of the Company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Technical complications, which may
arise, could prevent the prompt implementation of any strategically
significant plan(s) outlined above. The Company undertakes no duty
to revise or update any forward-looking statements to reflect
events or circumstances after the date of this
release.
KEYWORDS: Solar, Solar Panels,
Residential Solar, Commercial Solar, Solar Funding, Renewable
Energy,
Corporate
Communication
SinglePoint
Inc.
888-OTC-SING
investors@singlepoint.com
www.singlepoint.com
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