COMSovereign Announces an 80% Year-Over-Year Reduction of Outstanding Secured Debt

Rhea-AI Summary

COMSovereign Holding Corp. (NASDAQ: COMS, COMSP) reported a significant 80% reduction in outstanding secured debt, totaling approximately $2,200,000 as of December 31, 2022. This successful debt reduction is part of the company's broader strategy to streamline operations and enhance fiscal flexibility. CEO David Knight emphasized the importance of a solid financial foundation for future growth, expressing gratitude for lender support in executing the company’s transition plan. The company plans to file its 10-Q for the quarter ending September 30, 2022, by February 24, 2023, to remain compliant with SEC and Nasdaq reporting requirements.

Positive

• Outstanding secured debt reduced by approximately 80% to $2,200,000 from the previous year.
• Improved fiscal flexibility for the company.
• Plans to file 10-Q on time, maintaining compliance with SEC and Nasdaq.

Negative

• None.

Debt Reduction is a Critical Element of the Business Transition Plan as the Company Continues to Streamline Operations, Reduce Costs, and Identify Additional Revenue-Generating Opportunities

TUCSON, Ariz., Feb. 13, 2023 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS and COMSP) ("COMSovereign" or the "Company"), a U.S.-based developer of 4G LTE Advanced and 5G communication systems today provided an update on its debt reduction efforts. As of December 31, 2022, outstanding secured debt totaled approximately $2,200,000, representing a reduction of approximately 80% from levels reported for the year ended December 31, 2021.

"Central to our business transition efforts is having a solidified financial foundation, not only by refocusing our operations and cutting costs, but substantially reducing or eliminating our senior secured and convertible debt, which can provide COMSovereign with added fiscal flexibility. We are grateful for our lender's ongoing support which is enabling us to execute on our plan and complete our required regulatory filings," said David Knight, CEO and President of COMSovereign.

The Company intends to file its 10-Q for the quarter ended September 30, 2022 on or before February 24, 2023, bringing the Company current with all Security Exchange Commission and Nasdaq financial reporting requirements.

For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.

About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:

Steve Gersten, Director of Investor Relations
COMSovereign Holding Corp.
813-334-9745
investors@comsovereign.com

and

Media Relations for COMSovereign Holding Corp.:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE COMSovereign Holding Corp.

FAQ

What is the recent debt reduction status for COMSovereign Holding Corp.?

COMSovereign has reduced its outstanding secured debt by approximately 80%, bringing it down to about $2,200,000 as of December 31, 2022.

When will COMSovereign file its 10-Q?

COMSovereign plans to file its 10-Q for the quarter ended September 30, 2022, on or before February 24, 2023.

How does debt reduction affect COMSovereign's financial position?

The debt reduction enhances COMSovereign's fiscal flexibility, supporting its business transition efforts.

What was the outstanding secured debt for COMSovereign at the end of 2021?

The outstanding secured debt for COMSovereign at the end of 2021 was significantly higher, before being reduced by around 80% by the end of 2022.