SuperCom Secures Additional Capital to Support Growth Strategy
SuperCom (NASDAQ: SPCB), a global provider of secure solutions for the for the e-Government, IoT and Cybersecurity sectors, announced today the closing of a financing with gross proceeds of $5 million to support the company’s growth capital needs.
For the consideration of $5 million in gross proceeds, SuperCom issued a 2-year unsecured, subordinated promissory note to a certain institutional investor. The note has a 5% annual coupon and a built-in increase to the balance of the note by 5% every 6 months, for any portion of the note which has not been paid down prior to maturity. All principal and interest accrued is required to be paid in only one-bullet payment at maturity, and the company has the right to pre-pay any portion of the note at any time without a pre-payment penalty. There is an option at SuperCom’s discretion only, at any time after 12 months to pay down all or a portion of the note using its ordinary shares, subject to certain conditions being met.
“We are pleased to have secured this capital, which will support our emphasis on growth in the future. Numerous wins in government tenders displacing our competition, proprietary technology introducing new abilities and superior performance, and a growing need of nations to utilize electronic monitoring and cyber security technology have positioned us with an opportunity to scale up and grow our market share,” commented company President and CEO Ordan Trabelsi.
“We believe staying at the forefront of technology innovation is essential as well as continuing to grow our global footprint with more project deployments in more geographies. Our financings help provide the upfront capital required to support new project deployments, while continuing to invest in growth. Furthermore, we plan to continue making investments in research and development, as well as investments in sales and marketing in order to reach more customers, while delivering exceptional service and project management to existing customers. And in turn, we expect to not just maintain, but grow high-margin recurring revenue streams in the future.”
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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