The shares issuance and other favorable terms agreed upon
with SuperCom's senior lender increase the free cash flows to be
used by the company to support its growth strategy
TEL
AVIV, Israel, Jan. 23,
2025 /PRNewswire/ -- SuperCom (NASDAQ: SPCB), a
global provider of secure solutions for the e-Government, IoT, and
Cybersecurity sectors, announced today the issuance of
100,000 of its ordinary shares at a price of
$43.74 per share, which reflects a
significant premium to the last closing price, to pay down
$4.374 million of SuperCom's
outstanding debt. This issuance and debt paydown were part of an
amendment that SuperCom executed with its senior lender, a large
national investment management firm. This amendment includes a
broader set of favorable modifications designed to enhance
SuperCom's financial flexibility and support its strategic growth
objectives.
In addition to the debt paydown through the shares issuance
at a price premium to the market, SuperCom secured an extension of
the maturity date of the lender's debt to December 31, 2028. Furthermore, monthly cash
interest payments and amortization payments to lender will no
longer be required; interest will accrue and be paid along with the
principal at maturity.
The $4.37 million debt balance
paydown and other favorable terms are expected to provide SuperCom
with additional free cash flow to be used for its growth strategies
over the next 4 years.
This debt paydown completes a 32% reduction of SuperCom's
total outstanding debt in the past year.
"We are very pleased with this amendment, reflecting the strong
relationship and trust we have built with our senior lender over
the years. This amendment not only allowed us to issue shares at a
premium price of $43.74, but also
provides us the financial flexibility we need to support our
strategic plans and continued global expansion," commented
Ordan Trabelsi, President and CEO of
SuperCom. "After winning more than 15 national projects in
Europe in recent years and rapidly
expanding into the U.S. market with entry into 6 new states since
the summer of 2024, we are well positioned to capitalize on unique
opportunities with high expected returns on investment. By securing
more favorable terms and increasing free cash flows, we are better
equipped to reach our long-term growth objectives and drive
long-term value for our stakeholders."
More details on this debt amendment are described in SuperCom's
Report on Form 6-K filed by SuperCom with the U.S. Securities and
Exchange Commission on January 23,
2025.
About SuperCom
Since 1988, SuperCom has been a global provider of traditional
and digital identity solutions, providing advanced safety,
identification, and security solutions to governments and
organizations, both private and public, worldwide. Through its
proprietary e-Government platforms and innovative solutions for
traditional and biometrics enrollment, personalization, issuance,
and border control services, SuperCom has inspired governments and
national agencies to design and issue secure Multi-ID documents and
robust digital identity solutions to its citizens and visitors.
SuperCom offers a unique all-in-one field-proven RFID & mobile
technology and product suite, accompanied by advanced complementary
services for various industries, including healthcare and homecare,
security and safety, community public safety, law enforcement,
electronic monitoring, and domestic violence prevention. For more
information, please visit SuperCom's website: www.supercom.com
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Statements preceded or followed by or that otherwise
include the words "believes", "expects", "anticipates", "intends",
"projects", "estimates", "plans", and similar expressions or future
or conditional verbs such as "will", "should", "would", "may" and
"could" are generally forward-looking in nature and not historical
or current facts. These forward-looking statements are subject to
risks and uncertainties that could cause our actual results to
differ materially from the statements made. Examples of these
statements include, but are not limited to, statements regarding
business and economic trends, the levels of consumer, business and
economic confidence generally, the adverse effects of these risks
on our business or the market price of our ordinary shares, and
other risks and uncertainties described in the forward looking
statements and in the section captioned "Risk Factors" in our
Annual Report on Form 20-F for the year ended December 31, 2023, filed with the U.S. Securities
and Exchange Commission (the "SEC") on April
22, 2024, our reports on Form 6-K filed from time to time
with the SEC and our other filings with the SEC. Except as required
by law, we not undertake any obligation to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this press
release.
SuperCom Investor Relations:
ir@supercom.com
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