High Wire Networks Divests Non-Strategic Business Line

Rhea-AI Summary

High Wire Networks Inc (OTCQB: SGSI) has divested its 50% stake in JTM Electrical and Technology, LLC for $525,000, with $200,000 upfront and the remainder payable over 13 months. This strategic move aligns with the company’s focus on its national electrical and technology installation services, reinforcing its vision for high-value services and recurring revenue streams. However, this divestiture will impact the company’s previously forecasted Q1 2022 revenue, with no updates provided on the revised estimates.

Positive

• Divestiture aligns with strategic focus on high-value services and recurring revenue.
• Company receives $525,000 cash, improving liquidity.

Negative

• Divestiture will negatively impact previously forecasted Q1 2022 revenue.

Divestiture of Local Electrical Division Brings Focus on Strategic Vision

BATAVIA, Ill., Feb. 17, 2022 (GLOBE NEWSWIRE) --  High Wire Networks Inc. (the “Company” or "High Wire") (OTCQB: SGSI), a leading global technology systems integrator and managed cybersecurity solutions provider, has divested its 50 percent membership interest in JTM Electrical and Technology, LLC based in the Chicago Metropolitan area.

High Wire will receive:

• $525,000 in cash
• $200,000 upfront with the
• remaining balance paid over 13 months

The Company will continue to focus on its national electrical and technology installation services, which align to High Wire’s Tech-enabled Services division.

“As mentioned previously, whether we are a buyer or seller, alignment to our long-term strategy of high-value services and recurring revenue streams is paramount,” said High Wire CEO Mark Porter. “We maintain laser focused on the execution of previously stated goals.”

The divestiture will have an impact on previously forecasted Q1 2022 revenue. The Company has not put forth an update at this time.

About High Wire Networks Inc.
For 20 years, High Wire Networks has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers, and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration, and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our award-winning Overwatch Managed Security Marketplace enables our partners to deliver comprehensive cybersecurity that’s easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. For more information about the Company and its technologies visit the Company’s public filings at www.SEC.gov or the Company’s website at http://www.highwirenetworks.com/

Forward-Looking Statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.

Investor Relations
investors@highwirenetworks.com

Media Contact:
Susanna Song
Vice President, Marketing and Communications
High Wire Networks
630-635-6717
susanna.song@highwirenetworks.com

FAQ

What was the purpose of High Wire Networks' divestiture on February 17, 2022?

The divestiture was aimed at aligning with the company's strategic focus on high-value services and recurring revenue.

How much will High Wire Networks receive from the divestiture of its interest in JTM Electrical?

High Wire Networks will receive $525,000, with $200,000 upfront and the remaining balance paid over 13 months.

How does the divestiture affect High Wire Networks' Q1 2022 revenue forecast?

The divestiture will negatively impact the previously forecasted Q1 2022 revenue, though no updated figures have been provided.

What is the stock symbol of High Wire Networks?

The stock symbol for High Wire Networks is SGSI, traded on OTCQB.