COMSovereign Holding Corp. Announces Nasdaq Listing and Pricing of $16.0 Million Public Offering

Rhea-AI Summary

COMSovereign Holding Corp. (NASDAQ: COMS) announced a public offering of 3,855,422 units at $4.15 per unit, aiming for gross proceeds of $16,000,001. Each unit comprises one share of common stock and a warrant for one additional share. The offering is set to close on January 26, 2021, with a 45-day option for underwriters to purchase an additional 578,312 units. Proceeds will be used for debt repayment, acquisitions, inventory production, and working capital. Trading of the stock and warrants on Nasdaq is expected to start on January 22, 2021.

Positive

• Intended use of offering proceeds for debt repayment and acquisitions, potentially enhancing company growth.
• Approval to list common stock and warrants on Nasdaq, increasing visibility and trading opportunities.

Negative

• Public offering may lead to dilution of existing shares.

DALLAS, Jan. 21, 2021 /PRNewswire/ -- COMSovereign Holding Corp. (NASDAQ: COMS) ("ComSovereign" or "Company"), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today announced the pricing of an underwritten public offering of 3,855,422 units consisting of one share of common stock and one warrant exercisable for one share of common stock at a public offering price of $4.15 per unit for aggregate gross proceeds of $16,000,001 prior to deducting underwriting discounts, commissions, and other offering expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 578,312 units at the public offering price less the underwriting discounts and commissions. The offering is expected to close on January 26, 2021, subject to satisfaction of customary closing conditions.

The Company has received approval to list its common stock and warrants on the Nasdaq Capital Market under the symbols "COMS" and "COMSW", respectively, with trading expected to begin on January 22, 2021.

The Company intends to use the net proceeds from the offering primarily for the repayment of outstanding indebtedness, the acquisition of new companies or products, inventory production and marketing, operating expenses, working capital and general corporate purposes.

Kingswood Capital Markets, division of Benchmark Investments, Inc., is acting as Sole Book Runner with Dawson James Securities Inc. acting as Co-Manager for the offering.

The Securities and Exchange Commission ("SEC") declared effective a registration statement on Form S-1 relating to these securities on January 21, 2021. A final prospectus relating to this offering will be filed with the Securities and Exchange Commission. When available, copies of the final prospectus relating to this offering can be obtained at the SEC's website at www.sec.gov or from Kingswood Capital Markets, division of Benchmark Investments Inc., 17 Battery Place, Suite 625, New York, NY 10004, Attention: Syndicate Department, or via email at syndicate@kingswoodcm.com or telephone at (212) 404-7002. Before investing in this offering, interested parties should read in their entirety the prospectus, which provides more information about the Company and such offering.

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.

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-NR 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. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company's facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company's products and services, economic conditions in the U.S. and worldwide, and the Company's ability to recruit and retain management, technical, and sales personnel. 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:

Investor Relations for COMSovereign Holding Corp.:
Steve Gersten
813-334-9745
investors@comsovereign.com 

Dave Gentry
RedChip Companies, Inc.
407-491-4498
dave@redchip.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 size and price of COMSovereign's public offering?

COMSovereign is offering 3,855,422 units at a price of $4.15 per unit, aiming for gross proceeds of $16,000,001.

When is the expected closing date for the COMSovereign public offering?

The offering is expected to close on January 26, 2021, subject to customary closing conditions.

What are the intended uses of proceeds from the COMSovereign offering?

The proceeds will primarily be used for debt repayment, acquisitions, inventory production, operating expenses, and general corporate purposes.

When will COMSovereign's common stock and warrants begin trading on Nasdaq?

Trading of COMSovereign's common stock and warrants is expected to begin on January 22, 2021.

Is there an option for underwriters in the COMSovereign offering?

Yes, underwriters have a 45-day option to purchase up to an additional 578,312 units at the public offering price.