mPhase Negotiates Paydown of $0.8 Million of Debt at Significant Discount

Rhea-AI Summary

mPhase Technologies (OTC: XDSL) announced the successful settlement of $784,000 in legacy debt for a one-time payment of $235,000. This capital structure cleanup has removed all prior variable-rate convertible notes and significantly strengthened the company's balance sheet. The CEO expressed satisfaction with these developments, emphasizing the protection of shareholders from dilution and increased cash reserves for operational initiatives. mPhase aims to innovate and create sustainable, long-term value for shareholders moving forward.

Positive

• Settlement of $784,000 in legacy debt for only $235,000, resulting in significant savings.
• Elimination of all prior variable-rate convertible notes, reducing shareholder dilution risk.
• Strengthened balance sheet improving future operational initiatives and financial stability.

Negative

• None.

Company Completes Capital Structure Cleanup, Including Removal of All Variable-Rate Convertible Notes and Paydown of Decade-Old Debt at Significant Discount

Gaithersburg, MD, April 19, 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 it reached an agreement to pay off $784,000 of legacy debt at a significant discount to current value.

The judgement settlement agreement, reached with John Fife (dba St. George Investors), represented $784,000 of debt on the balance sheet and was settled for a one-time payment of $235,000.

“We are pleased to have fortified our balance sheet through the elimination of this decade-old debt, as well as all prior variable-rate convertible notes,” said Anshu Bhatnagar, Chief Executive Officer of mPhase Technologies. “Our recent capital structure cleanup protected our shareholders from significant dilution while currently preserving our cash for high-value, near-term operational initiatives.

“These efforts have served to strengthen our financial position to ensure we can continue to innovate and work towards creating sustainable, long-term value for our shareholders. I look forward to providing our shareholders with an update in the short-term on our refined business strategy in 2021 and beyond.”

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

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Investor Relations Contact
Brian Prenoveau
Managing Director
MZ Group - MZ North America
(561) 489-5315
SNWV@mzgroup.us
www.mzgroup.us