NEWPORT BEACH, Calif.--(BUSINESS WIRE)--DPW Holdings, Inc. (NYSE American: DPW) a diversified holding company (“DPW,” or the “Company”) announced that the Company has consummated a transaction with its senior lender to refinance its outstanding debt through the issuance of a secured, non-convertible promissory note in the principal amount of $2,900,000 for which it received $2,800,000 in gross proceeds. The Company used the gross proceeds to repay an outstanding convertible promissory note to the lender and used the remainder to extinguish other short-term debt in the aggregate amount of approximately $1,000,000. The Company also stated that it continues to work with certain other of its creditors to decrease its debt and improve its capital structure while moving forward with its growth and profitability objectives for 2019. As stated during its Investor Conference on February 25, 2019, the Company’s goals for this year include decreasing its debt, increasing both its revenue and profitability and providing greater shareholder value. In consideration for the lender agreeing to enter into the refinancing described above, the Company agreed to issue it 500,000 shares of its common stock, subject to the approval by the NYSE American, and to register such shares with the Securities and Exchange Commission.
DPW’s CEO and Chairman, Milton “Todd” Ault, III said, “We are very pleased we were able to work with our lenders to reduce more of our short-term debt and restructure and strengthen our balance sheet. This particular transaction eliminates eight creditors, simplifies our balance sheet and audit workload and reduces our overhead costs. The Company remains dedicated to increasing its revenue growth, improve its bottom-line results and attain its stated goals for 2019. We are very pleased our creditors continue to work with us as we strive to improve our capital structure.”
For more information on the Company, DPW recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at http://www.DPWHoldings.com 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 that hold global potential. 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.
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.