mPhase Announces $2.0 Million Institutional Financing to Support Near-Term Growth Initiatives

Rhea-AI Summary

mPhase Technologies, Inc. (OTC: XDSL) has secured $2.0 million in fixed-rate institutional financing to boost growth initiatives. The funding comes through a convertible promissory note with a fixed conversion price of $0.20 per share, maturing on April 6, 2022, and carrying a 5% annual interest rate. CEO Anshu Bhatnagar stated this financing will help pay off existing convertible debt, minimizing shareholder dilution and positioning the company for revenue growth.

mPhase is focused on creating sustainable long-term value for its shareholders.

Positive

• Secured $2.0 million in financing to support growth initiatives.
• Financing will help pay off existing convertible debt, reducing potential dilution for shareholders.
• CEO emphasizes strengthening financial position and driving revenue growth.

Negative

• None.

Gaithersburg, MD, April 13, 2021 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTC: XDSL) (“mPhase” or the “Company”), a leading technology driven development company that creates and commercializes solutions that impact everyday people, today announced that is has secured $2.0 million in fixed-rate, institutional financing to support near-term growth initiatives.

Per the terms of the agreement, mPhase has raised $2.0 million via a convertible promissory note with a fixed conversion price of $0.20 per share with an institutional investor. The note matures on April 6, 2022 and bears interest at the rate of 5% per annum. Full terms of the note are available in the Company’s Form 8-K dated April 13, 2021 as filed with the SEC.

“We are pleased to have fortified our balance sheet through this attractive fixed-rate institutional debt financing, which we will leverage to pay off our previously outstanding convertible debt – significantly reducing potential dilution to our shareholders,” said Anshu Bhatnagar, Chief Executive Officer of mPhase Technologies. “This financing will provide us with the capital needed to accelerate our development timelines, enabling the creation of multiple new recurring revenue streams across our various businesses.

“Our financial position continues to strengthen, as we improve our receivables collections and drive forward revenue growth throughout the remainder of the year. We are well positioned to continue to execute upon the near-term growth opportunities facing mPhase today, positioning us to create sustainable, long-term value for our shareholders,” concluded Bhatnagar.

About mPhase Technologies

mPhase Technologies (OTC: XSDL) is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com. Please follow us on twitter: @mPhase_Tech for the latest updates.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Investor Contact:
ir@mphasetech.com

FAQ

What financing did mPhase Technologies secure?

mPhase Technologies secured $2.0 million in institutional financing through a convertible promissory note.

What is the conversion price for the convertible note issued by mPhase?

The conversion price for the convertible note is $0.20 per share.

When does the convertible promissory note mature?

The convertible promissory note matures on April 6, 2022.

What interest rate is associated with the financing obtained by mPhase?

The financing bears an interest rate of 5% per annum.

How will the financing impact mPhase Technologies' shareholders?

The financing will help reduce potential dilution to shareholders by paying off previously outstanding convertible debt.