DPW Holdings Inc. (NYSEAMERICAN:DPW) stock declined last week but this week the stock began on a high and in the previous trading session the stock gained 7.76% to close the day at $0.10. The movement comes at the back of the company announcing that they had amicably executed an exchange agreement with their institutional investor.
The $1.04 Million settlement
The agreement aims at curing the company’s recent default as well as to settle the debt that has an estimated face value of approximately $1.04 Million at 8% annual interest.
In accordance with the signed agreement, DPW Holdings issued 8.73 Million shares of the common stock at $0.12 per share. In the announcement the commonly indicated that they appreciate the cooperation and support that the institutional investor had accorded them until the conclusion of all the issues.
DPW Holding is currently focusing on the reduction of its liabilities and the company expects that moving forward in 2019 it anticipates revenue growth as well as the expansion of its portfolio. They filed a prospectus supplement after the closing of trading on 12 February 2019 with the Securities Exchange Commission in accordance with Rule 424(b)(5). The company has indicated that the prospectus supplement is accessible to investors and it is available under the Investor Relations tab.
Milton Todd Ault III the CEO and Chairman of DPW indicated that they were pleased to have worked together with their institutional investor to come into an amicable conclusion to resolve and close pending issues between the two parties. He added that the resolution will allow them to focus on how to make the company profitable in 2019 and beyond.
In other developments, the company has announced a new record date for the scheduled special stockholders meeting seeking approval for authorization for the reverse stock split. The company has further indicated that the date for the special shareholder meeting will be 14 March 2019. During the meeting, stockholders of the company’s common stock as of 11 February 2019 will vote their shares.