AVCtechnologies Announces Securities Purchase Agreement
15 December 2021 - 8:12AM
American Virtual Cloud Technologies, Inc. (“AVCtechnologies” or the
“Company”) (Nasdaq: AVCT) today announced that it has entered into
a securities purchase agreement for a sale of equity securities to
an institutional investor. The initial gross proceeds from the
current sale will total $25 million, and combined with the November
equity raise, may provide up to approximately $76 million of gross
cash proceeds to the company in aggregate, if and when all warrants
issued pursuant to the transactions are fully exercised.
AVCtechnologies previously announced a strategic focus on
acquisitions and organic growth in its cloud technologies business
and to explore strategic opportunities for its IT solutions
business, including the planned divestiture of Computex Technology
Group (“Computex”). The Company expects that the latest placement
and expected proceeds from its proposed disposition of Computex
will fully fund the Company’s current growth plan through 2022 and
completely eliminate its debt.
“The newly issued shares of common and preferred stock which
result from these placements allow for a broader base of
non-affiliated shareholders, which we believe will create a better
trading environment for our investors and improved liquidity in the
marketplace,” said Darrell J. Mays, CEO of AVCtechnologies. “We
look forward to deploying these resources and employing our
industry-leading suite of products and services to achieve our
previously announced revenue guidance.”
Larry Mock, AVCtechnologies’ Board Chair, said, “This investment
will not only strengthen AVCtechnologies’ balance sheet but will
also improve its agility in the market. I continue to have the
utmost conviction in AVCtechnologies’ growth prospects.”
AVCtechnologies delivers a full suite of cloud-based Unified
Communications as a Service (UCaaS) capabilities to its cloud
customers through its carrier-grade Kandy Business Solutions
including Cloud PBX, Smart Office UC Clients, Collaboration,
Contact Center, and SIP Trunks. The projected annual growth of the
Kandy Business Unit comes as a result of deeper penetration by
existing enterprise customers including IBM, AT&T, and Etisalat
and expansion into new customer relationships.
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.
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 projections,
estimates and forecasts of revenue and other financial and
performance metrics, the Company’s plans to divest Computex
Technology Group and to identify and/or complete suitable
acquisitions, the consummation of the financing contemplated by the
securities purchase agreement dated December 13, 2021, the exercise
of outstanding options issued by the Company, 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:Info@avctechnologies.com
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