Dalrada Corporation Investors Convert $6 Million Into Equity

Rhea-AI Summary

Dalrada Corporation (OTCQB: DFCO) announced the authorization of 10,002 Convertible Series “G” Preferred Shares at a par value of $0.01 each on September 23. This move will convert $6,532,188 from liabilities to Owner’s Equity. The investors agreed to waive penalties and default interest after September 30, 2021. This transaction indicates a positive shift in equity management. Dalrada has made significant advances in technology, engineering, and health sectors, enhancing revenues and operating profits during fiscal year 2021. The company aims to provide innovative solutions across its three divisions.

Positive

• Authorization of 10,002 Convertible Series 'G' Preferred Shares.
• Conversion of $6,532,188 from liabilities to Owner’s Equity.
• Waiver of penalties and default interest agreed by investors.
• Increased revenues and operating profits in fiscal year 2021.

Negative

• None.

SAN DIEGO, Calif.--(BUSINESS WIRE)-- The Board of Directors of Dalrada Corporation (OTCQB: DFCO, "Dalrada") announces that on September 23^rd, it authorized the creation of 10,002 Convertible Series “G” Preferred Shares at $0.01 par value per share. The holders of shares of Series “G” Convertible Preferred Stock have the right to convert each preferred share into shares of common stock.

Dalrada’s primary investors are executing agreements that allow Dalrada to move $6,532,188 of principal and interest from Liabilities to Owner’s Equity as Convertible Series “G” Preferred Shares. The parties have agreed to waive penalties, interest, and default interest subsequent to September 30, 2021. The Convertible Series “G” Preferred shares will provide for the related equity to convert into common shares. The effect of this transaction will be shown on the balance sheet to be published shortly.

"As Dalrada evolves, the Company continually proves itself as an innovative business leader. Especially over the past two years amid unprecedented conditions, Dalrada achieved significant milestones. This increased awareness of Dalrada's philosophy, purpose, and ongoing mission. And with a well-established foundation, Dalrada is poised for growth."

The three divisions that compose Dalrada, Technology, Engineering, and Health, all made significant advances that increased revenues and operating profit during the fiscal year 2021. Dalrada continues its mission to provide alternative end-to-end solutions to complex problems with advances in technology, environmental sustainability & clean energy, and health & wellness.

Continuously building on its core life sciences, technology, and engineering practices, Dalrada operates under the tenet of bringing innovative products and services to a complex new world. As consumers, businesses, and governments seek alternative solutions, Dalrada's subsidiaries respond with affordable, available, accessible, and impactful innovations.

For more information on Dalrada and its subsidiaries, visit www.dalrada.com.

About Dalrada (DFCO)

With perseverance, valor, dedication, and vision, Dalrada Corporation is dedicated to tackling worldwide challenges of today and tomorrow.

Dalrada is a global company that operates under the tenet of creating impactful innovations that matter for the world. The Company works continually to produce disruptive solutions that bridge the gap of accessibility and accelerate positive change for current and future generations.

Established in 1982, the Company has since grown its footprint to include the business divisions: Dalrada Health, Dalrada Precision, and Dalrada Technologies. Each of Dalrada's subsidiaries actively produces affordable and accessible world-class solutions to global problems. For more information, please visit www.dalrada.com.

Disclaimer

Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones, marketing arrangements and plans, and shipments to and regulatory approvals in international markets. Such statements reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors and will be dependent upon a variety of factors including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products and services in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005349/en/

Denise Mahaffey

858.283.1253

inquiries@dalrada.com

Source: Dalrada Corporation

FAQ

What is the significance of Dalrada's authorized Convertible Series 'G' Preferred Shares?

The authorization of 10,002 Convertible Series 'G' Preferred Shares allows for the conversion of $6,532,188 from liabilities to Owner’s Equity, improving the company’s financial structure.

How did Dalrada Corporation perform financially in fiscal year 2021?

Dalrada Corporation reported significant advances in its technology, engineering, and health divisions, leading to increased revenues and operating profits during fiscal year 2021.

What was the date of the Convertible Series 'G' Preferred Shares authorization by Dalrada?

The authorization of the Convertible Series 'G' Preferred Shares was made on September 23.

What impact does the conversion of liabilities to Owner's Equity have on Dalrada's balance sheet?

The conversion of $6,532,188 from liabilities to Owner's Equity will positively reflect on Dalrada's balance sheet, indicating improved financial health.

What investor agreements are related to the September 23 announcement?

Investors agreed to waive penalties, interest, and default interest after September 30, 2021, as part of the arrangements surrounding the Convertible Series 'G' Preferred Shares.