Charge Enterprises Secures $16.5 Million of Debt Financing

Rhea-AI Summary

Charge Enterprises Inc. (OTC PINK:CRGE) announced $16.5 million in debt financing from an institutional investor to acquire ANS Advanced Network Services. This acquisition enhances its telecommunications services, specifically DC power installation and 5G capabilities. The financing comprises $5.5 million convertible at $3 per share and $11.5 million in a senior secured note at 7.5% interest, maturing in 18 months. Additionally, warrants to purchase 1,870,000 shares at $4 each were issued. This strategic move underlines Charge's commitment to expanding its operational scope in telecommunications.

Positive

• Secured $16.5 million in debt financing to enhance growth.
• Acquisition of ANS Advanced Network Services strengthens telecom capabilities.
• Warrants issued enhance investor interest and potential capital influx.

Negative

• Debt financing adds to overall financial liabilities.
• 7.5% interest on senior secured note could strain cash flow.

NEW YORK, NY / ACCESSWIRE / May 21, 2021 / Charge Enterprises Inc. (OTC PINK:CRGE), ("Charge" or "the Company"), connecting people everywhere with communications, infrastructure and charging, announced that it has received $16.5 million of debt financing from an institutional Investor. Proceeds will be used to fund the acquisition of ANS Advanced Network Services, a turnkey provider of direct current power installation, 5G and small cell telecommunications services, along with ongoing operations. $5.5 million of the financing is convertible at $3 per share and matures in three years and the balance of $11.5 million is in the form of a senior secured non-convertible note that pays a coupon of 7.5% per annum and matures in 18 months. As part of the transaction, Charge issued the investors three-year warrants to purchase an aggregate of up to 1,870,000 of its common stock at an exercise price of $4 per share.

The offer and sale of the notes, warrants and the shares, if any, issuable upon conversion of the notes and/or warrants have not been registered under the Securities Act or applicable state securities laws, and the notes and such shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes, the warrants or any shares issuable upon conversion of the notes and/or exercise of the warrants, nor shall there be any sale of the notes, warrants or such shares, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

About Charge Enterprises Inc.

Charge Enterprises Inc; With a mission of connecting people everywhere with a strategy in telecom network infrastructure, connected calls, power banks, EV charging infrastructure installation and maintenance. Trading under the Ticker: CRGE. We're a public company that shares our success with all stakeholders.

Our business operates in three distinct divisions through a number of recently acquired, or newly formed subsidiaries, including:

• Charge Communications, with a strategy to offer Unified Communication as a Service (UCaaS) and Communication as a Platform Service (CPaaS), providing termination of both voice and data to Carriers and Mobile Network Operators (MNO's) globally for over 2 decades.
• Charge Infrastructure, addresses telecom network infrastructure, including 5G small cell installation, portable power banks, micro-mobility charging, and EV charging installation, stations & maintenance.
• Charge Investment, along with marketable securities, the investment division focuses on opportunist investments in EV and telecom related businesses

Charge's strategy is to do the unglamorous part of connecting calls and powering the future of movement.

We have recently acquired a number of subsidiaries, through which we operate our three business divisions.

To Learn more about Charge, visit https://www.charge.enterprises/.

Safe Harbor Statement

Information in this news release may contain statements about future expectations, plans, prospects or performance of Charge Enterprises, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. Charge Enterprises, Inc. cautions you that any forward-looking information provided by or on behalf of Charge Enterprises, Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. Charge Enterprises, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Charge Enterprises, Inc.'s control. In addition to those discussed in Charge Enterprises, Inc.'s press releases, public filings, and statements by Charge Enterprises, Inc.'s management, including, but not limited to, Charge Enterprises, Inc.'s estimate of the sufficiency of its existing capital resources, Charge Enterprises Inc's ability to raise additional capital to fund future operations, Charge Enterprises, Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities and, in identifying contracts which match Charge Enterprises, Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. Charge Enterprises, Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Contact:

LHA Investor Relations
Carolyn Capaccio, CFA
ccapaccio@lhai.com
212.838.3777

SOURCE: Charge Enterprises Inc.

View source version on accesswire.com:
https://www.accesswire.com/648637/Charge-Enterprises-Secures-165-Million-of-Debt-Financing

FAQ

What is the recent financing amount Charge Enterprises received?

Charge Enterprises secured $16.5 million in debt financing.

What will Charge Enterprises use the financing for?

The funds will be used for acquiring ANS Advanced Network Services and funding ongoing operations.

What are the terms of the debt financing for Charge Enterprises?

The financing includes $5.5 million convertible at $3 per share and $11.5 million as a senior secured note with a 7.5% coupon.

What is Charge Enterprises' stock symbol?

Charge Enterprises trades under the ticker symbol CRGE.

What kind of services does Charge Enterprises provide?

Charge Enterprises offers telecommunications services, including power installation and 5G support.