AVCtechnologies announces significant debt reduction and
ATLANTA, September 16, 2021 (GLOBE NEWSWIRE) – American Virtual Cloud Technologies, Inc. (Nasdaq: AVCT) (âAVCtechnologiesâ or the âCompanyâ) announced today that following the Board’s decision to administration of the Company to explore the strategic alternatives announced on April 7, 2021, the Board of Directors authorized the Company to focus its strategy on acquisitions and organic growth of its cloud technologies business as well as to explore strategic opportunities for its IT solutions business, including the planned divestiture of Computex Technology Groupe (Computex). The process put in place upon receipt of the previously announced non-binding proposal did not result in the submission of a final offer. The Company believes that the change will allow the Company to optimize the allocation of resources, focus on core competencies and improve its ability to invest in areas with maximum growth potential. The Company expects that the proceeds of any potential sale transaction will be used to further reduce the balance sheet and provide working capital.
AVCtechnologies acquired Kandy, a real-time, cloud-based communications platform offering exclusive UCaaS, CPaaS and CCaaS capabilities, in December 2020 amid growing demand from businesses shifting their operations to infrastructure, security and of cloud-based 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 and white label services to a comprehensive list of globally recognized customers including AT&T, City of Los Angeles, IBM and Etisalat.
Darrell J. Mays, CEO of AVCtechnologies, said: âWe are delighted to continue this next step in our overall plan for growth through acquisition and organically, as well as to strengthen the focus of Kandy’s business to meet the needs. of its customers. “
In addition, 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 capital. -actions. The planned conversion of the debenture was previously announced on July 22, 2021.
âThe board’s decision to actively seek strategic acquisitions to complement Kandy’s cloud platform and the completed debenture conversion underscores our commitment to ensuring that our objectives are aligned with the best interests of shareholders as we work to moving the business forward, âsaid Larry Mock, Chairman of the Board of Directors of AVCtechnologies.
About American Virtual Cloud Technologies, Inc.
American Virtual Cloud Technologies, Inc. (âAVCtechnologiesâ; Nasdaq: AVCT) is a leading global IT solutions provider offering a comprehensive set 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 company
Computex Technology Solutions is an award-winning solutions provider that empowers its customers to grow, differentiate, and scale their business through innovative and proven technology. Computex combines over 30 years of hands-on experience with unmatched processes to deliver enterprise networking, cloud and cybersecurity solutions, as well as managed services, to meet clients’ unique IT, business and budget goals. To learn more, please visit: https://computex.net.
About Kandy, an AVCtechnologies company
Kandy is a cloud-based real-time communication 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, delivering a more engaging user experience. With Kandy, businesses of all sizes and types can quickly integrate real-time communication capabilities into their existing business applications and processes. For more information, visit https://kandy.io.
Caution Regarding Forward-Looking Statements
This press release includes certain statements which are not historical facts but are forward-looking statements for the purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as “believe,” may “,” will “,” estimate “,” continue “,” anticipate “,” intend “,” expect “,” should “,” should “,” plan ” “,” Predict “,” seem “,” seek “,” future “,” prospect “and similar expressions which predict or indicate future events or trends or which are not statements of historical subjects. These forward-looking statements include, without limitation, statements regarding the Company’s plans to divest Computex Technology Group and to identify and / or make appropriate acquisitions, and expected future growth. The actual results or results of the Company and the timing of certain events may differ materially from those discussed in forward-looking statements, in particular due to the uncertainty associated with the ability to identify, evaluate and complete any strategic transaction. , the impact of any strategic transaction that may be conducted on the business of the Company, including its financial and operating results and its employees and customers. These statements are based on various assumptions and the current expectations of the management of the Company and are not predictions of actual performance. These forward-looking statements are provided for informational purposes only and are not intended to be used as, and should not be relied upon by any investor as, a guarantee, assurance, prediction or 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 preferences, prospects and competitive conditions of the Company’s customers in the industries in which the Company operates; the Company’s significant indebtedness; the risks associated with the potential effects of COVID-19 on the Company’s business; the risks that the recently acquired Kandy Communications business will not be successfully integrated; ability to retain key personnel; the potential impact of the completion of the Kandy Communications acquisition on relationships with third parties, including customers, employees and competitors; conditions in the capital markets; and the factors discussed in the Company’s Amended Annual Report on Form 10-K filed with the SEC on May 14, 2021 under the heading âRisk Factorsâ and in other Company documents filed or to be filed with the DRY. If the risks materialize or if the assumptions prove to be incorrect, actual results could differ materially from the results suggested by these forward-looking statements. There may be additional risks that the Company is not currently aware of or that the Company currently believes to be immaterial, which could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts regarding future events and views as of the date of this report. The Company expects that subsequent events and developments will cause its valuations to change. However, although the Company may choose to update these forward-looking statements at some time in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be taken as representing the valuations of the Company as of a date subsequent to the date of this document. Therefore, one should not place undue reliance on forward-looking statements.
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