DPW Holdings Enters Into Exchange Agreements for Debt Totaling $1.4M
July 03 2019 - 5:45AM
Business Wire
Company Announces Restructured Debt to Date for 2019 Totals
$14.8M
DPW Holdings, Inc. (NYSE American: DPW), a diversified holding
company (“DPW,” or the “Company”), announced that it
has entered into two separate exchange agreements with two
creditors for debt previously in default in an aggregate amount in
excess of $1.4M. The Company restructured the debt by issuing new
convertible debt in the principal amount of $2,033,031.14. To date,
the principal amount of debt that DPW has either eliminated or
restructured for the year presently exceeds $14.8M.
On July 2, 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 September 21, 2018, the Company issued
to the investor a new Convertible Promissory Note in the principal
amount of $783,031.14 with an interest rate of 12% per annum and a
maturity date of December 31, 2019. Subject to the approval by the
NYSE American, the new note shall be convertible into shares of the
Company’s common stock at a conversion price equal to the greater
of $0.22 per share or 80% of the lowest daily volume-weighted
average price for the three trading days prior to the date of
conversion.
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 and
payable by the Company, the Company issued to the investor a new
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. Subject to the approval by the NYSE American,
the new note shall be convertible into shares of the Company’s
common stock at a conversion price equal to $0.22 per share.
From the Company’s perspective, the most prominent aspect of
these agreements is the exchange of non-convertible debt for
convertible debt, thus enabling the respective investors, at their
respective election, to reduce the debt owed to each of them by the
Company through the conversion of the principal and accrued
interest of their debt instruments into shares of the Company’s
common stock, which would obviate the requirement for the Company
to repay such dollar amounts in cash.
DPW’s CEO and Chairman, Milton “Todd” Ault, III said, “We are
very pleased we continue to be able to work with our lenders to
resolve our liabilities and cure any defaults at hand. It is quite
significant for DPW that we have resolved or reduced over $14.8M in
short-term debt and look forward in the current quarter to
completing the restructuring of our remaining short-term debt, as
we previously announced this year. We look forward to the remainder
of 2019 as we build on our progress and remain dedicated to
increase revenue growth and sources, improve our bottom-line
results and attain our stated goals for 2019. We are very pleased
our creditors continue to work 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 2,
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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