Spectrum Global Solutions Divests WaveTech GmbH and TNS

Rhea-AI Summary

Spectrum Global Solutions announces the divestiture of its subsidiaries, WaveTech GmbH and TNS, to a firm controlled by former Board members. This strategic move eliminates the company’s Series C Convertible Preferred Stock, retiring over $1.7M in convertible debt and improving the balance sheet. CEO Roger Ponder states this will streamline operations and remove overhead for both Spectrum and the divested subsidiaries, allowing them to pursue independent objectives. The company focuses on telecommunications services across various regions.

Positive

• Elimination of $1.7M in convertible debt strengthens the balance sheet.
• Streamlined operations expected to enhance focus and efficiency.

Negative

• None.

Divestiture Helps to Strengthen Balance Sheet

Boca Raton, FL, Oct. 06, 2020 (GLOBE NEWSWIRE) --  Spectrum Global Solutions, Inc. (the "Company" or "Spectrum") (OTCQB: SGSI), a single-source provider of next-generation communications network and professional services to telecommunications and enterprise markets, announces today the Company’s divestiture of its WaveTech GmbH and TNS subsidiaries to a company controlled by three former members of its Board of Directors.    In connection with the divestiture of these subsidiaries, Spectrum’s Series C Convertible Preferred Stock has in effect been eliminated and will retire more than $1.7M in convertible debt and other balance sheet liabilities.  The Series C Convertible Preferred Stock was previously convertible into up to $90 Million of Spectrum’s Common Stock.

Roger Ponder, CEO of Spectrum, stated, “The divestiture of these companies will allow Spectrum to proceed in a more streamlined and focused direction with a stronger balance sheet and without an overhang on its cap-table.  WaveTech GmbH and TNS will now be free to pursue their objectives separately and without public company overhead and oversight.

About Spectrum Global Solutions
Spectrum Global Solutions operates through its subsidiaries, AW Solutions and ADEX Corp. The Company is a provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. 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 https://SpectrumGlobalSolutions.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
Spectrum Global Solutions
www.SpectrumGlobalSolutions.com 
561.672.7068 

FAQ

What companies did Spectrum Global Solutions divest?

Spectrum Global Solutions divested its subsidiaries, WaveTech GmbH and TNS.

How much debt was retired due to the divestiture?

The divestiture resulted in the retirement of over $1.7M in convertible debt.

What was eliminated as part of the divestiture?

The Series C Convertible Preferred Stock was eliminated.

Who controlled the company that acquired WaveTech GmbH and TNS?

The acquiring company is controlled by three former members of Spectrum's Board of Directors.

How will the divestiture benefit Spectrum Global Solutions?

The divestiture is expected to allow Spectrum to operate with a stronger balance sheet and reduced overhead.