DPW Holdings announces deal with senior lender to refinance outstanding debt
DPW Holdings 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 $2.9M for which it received $2.8M 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 $1M. 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. 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 SEC. 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."