American Virtual Cloud Technologies, Inc. (Nasdaq: AVCT)
(“AVCtechnologies” or the “Company”) announced today that as a
result of the decision by the Company’s Board of Directors to
explore strategic alternatives announced April 7, 2021, the Board
has authorized the Company to focus its strategy on acquisitions
and organic growth in its cloud technologies business as well as to
explore strategic opportunities for its IT solutions business,
including the planned divestiture of Computex Technology Group
(Computex). The process that was established upon receipt of the
previously announced non-binding proposal did not result in the
submission of a definitive offer. The Company believes that the
change will allow the Company to optimize resource allocation,
focus on core competencies, and improve its ability to invest in
areas of maximal growth potential. The Company expects that the
proceeds from any potential sale transaction will be used to
further deleverage the balance sheet and provide working capital.
AVCtechnologies acquired Kandy, a cloud-based, real-time
communications platform offering proprietary UCaaS, CPaaS, and
CCaaS capabilities, in December 2020 amidst increasing demand by
businesses shifting their operations to cloud-based infrastructure,
security, and communications, the pace of which has been
accelerated by the COVID-19 pandemic. The Kandy platform also
includes pre-built customer engagement tools based on WebRTC
technology that provide secure, highly scalable, white-labeled
services to a comprehensive roster of globally recognized
customers, including AT&T, City of Los Angeles, IBM, and
Etisalat.
Darrell J. Mays, AVCtechnologies CEO, said, “We are excited to
pursue this next step in our comprehensive plan for acquisitive and
organic growth, as well as enhance the focus of the Kandy business
to meet the needs of its customers.”
Additionally, AVCtechnologies is pleased to announce that it has
completed the conversion of $133.9 million of outstanding
debentures into 38.8 million common shares which have been
registered for resale, significantly increasing its equity float.
The planned debenture conversion was previously announced on July
22, 2021.
“Both the decision by the Board to actively seek strategic
acquisitions to complement Kandy’s cloud platform and the completed
debentures conversion underscores our commitment to ensuring our
goals are aligned with the shareholders' best interests as we work
to drive the business forward,” said Larry Mock, Chairman of the
Board at AVCtechnologies.
About American Virtual Cloud Technologies,
Inc.American Virtual Cloud Technologies, Inc.
(“AVCtechnologies”; Nasdaq: AVCT) is a premier global IT solutions
provider offering a comprehensive bundle of services including
unified cloud communications, managed services, cybersecurity, and
enhanced connectivity. Our mission is to provide global technology
solutions with a superior customer experience. In 2020, American
Virtual Cloud Technologies, Inc., acquired Computex Technology
Group and Kandy Communications. For more information, visit
https://www.avctechnologies.com.
About Computex Technology Solutions, an AVCtechnologies
companyComputex Technology Solutions is an award-winning
solutions provider that enables its clients to grow, differentiate
and evolve their business via innovative and proven technology.
Computex combines over 30 years of hands-on experience with
unparalleled processes to deliver enterprise networking, cloud, and
cybersecurity data center solutions, as well as managed services,
to meet customers’ unique IT, business, and budgetary goals. To
learn more, please visit: https://computex.net.
About Kandy, an AVCtechnologies companyKandy is
a cloud-based, real-time communications platform offering
proprietary UCaaS, CPaaS, and CCaaS capabilities. Kandy enables
service providers, enterprises, software vendors, systems
integrators, partners and developers to enrich their applications
and services with real-time contextual communications, providing a
more engaging user experience. With Kandy, companies of all sizes
and types can quickly embed real-time communications capabilities
into their existing applications and business processes. For more
information, visit https://kandy.io.
Caution Regarding Forward-Looking
Statements
This press release includes certain statements that are not
historical facts but are forward-looking statements for purposes of
the safe harbor provisions under the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding the Company’s
plans to divest Computex Technology Group and to identify and/or
complete suitable acquisitions, and planned future growth. The
Company’s actual results or outcomes and the timing of certain
events may differ significantly from those discussed in any
forward-looking statements, including as a result of the
uncertainty associated with being able to identify, evaluate and
complete any strategic transaction, the impact of any strategic
transaction that may be pursued on the Company’s business,
including its financial and operating results and its employees and
clients. These statements are based on various assumptions and on
the current expectations of the Company’s management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of the Company. These
forward-looking statements are subject to a number of risks and
uncertainties, including changes in the Company’s clients’
preferences, prospects and the competitive conditions prevailing in
the industries in which the Company operates; the Company’s
substantial indebtedness; risks associated with the potential
effects of COVID-19 on the Company’s business; risks that the
recently-acquired Kandy Communications business will not be
integrated successfully; ability to retain key personnel; the
potential impact of consummation of the Kandy Communications
acquisition on relationships with third parties, including
customers, employees and competitors; conditions in the capital
markets; and those factors discussed in the Company’s amended
annual report on Form 10-K filed with the SEC on May 14,
2021 under the heading “Risk Factors,” and other documents of the
Company filed, or to be filed, with the SEC. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. There may be additional risks that the Company
presently does not know or that the Company currently believes are
immaterial that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect the Company’s expectations,
plans or forecasts of future events and views as of the date of
this report. The Company anticipates that subsequent events and
developments will cause its assessments to change. However, while
the Company may elect to update these forward-looking statements at
some point in the future, the Company specifically disclaims any
obligation to do so. These forward-looking statements should not be
relied upon as representing the Company’s assessments as of any
date subsequent to the date of this document. Accordingly, undue
reliance should not be placed upon the forward-looking
statements.
Contact Thomas Kinginfo@avctechnologies.com+1
(404) 239-2863
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