COMSovereign Suspends Series A Preferred Stock Cash Dividend

Rhea-AI Summary

COMSovereign Holding Corp. (NASDAQ: COMS, COMSP) has announced a suspension of dividends on its 9.25% Series A Cumulative Redeemable Perpetual Preferred Stock. This decision comes after the payment of the May 2022 dividend, previously announced. The Board aims to preserve cash while finalizing the audit of its Annual Report for the year ended December 31, 2021, and seeking to sell non-core business operations. The suspension will last until further notice, with dividends accruing until authorized or declared in the future.

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• None.

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• Suspension of dividends on Series A Preferred Stock to preserve cash.
• Focus on selling non-core business operations may indicate financial strain.

DALLAS, May 25, 2022 /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 and solutions, today announced that its Board of Directors has suspended the payment of dividends on the Company's 9.25% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred Stock") until further notice.

The Company has paid the monthly dividend for May 2022 as previously announced on April 7, 2022 but is suspending its monthly Series A Preferred Stock dividend going forward in an effort to preserve cash while it is completing the audit of its Annual Report on Form 10-K for the year ended December 31, 2021 and continues to pursue the sale of non-core business operations.

In accordance with the terms of the Series A Preferred Stock, dividends on the Series A Preferred Stock will accrue until such dividends are authorized or declared. The Board intends to revisit the resumption of its monthly dividend in the future when appropriate.

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 and COMSP) has assembled a portfolio of communications technology companies that enhance connectivity across the entire network. By combining strategic acquisitions with organic research and development efforts, COMSovereign has built a U.S.-based communications solution provider able to deliver end-to-end 4G LTE Advanced and 5G-NR telecom solutions to network operators, enterprises, and governments. 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.

Investor Relations for COMSovereign Holding Corp.:

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

Why has COMSovereign suspended its dividend payments for the Series A Preferred Stock?

COMSovereign has suspended dividend payments to preserve cash while completing its Annual Report audit and pursuing the sale of non-core business operations.

When was the last dividend paid by COMSovereign?

The last dividend was paid in May 2022, as previously announced on April 7, 2022.

What is the dividend rate for COMSovereign's Series A Preferred Stock?

The dividend rate for the Series A Preferred Stock is 9.25%.