DPW Holdings repays or restructures debt to date for 2019 totaling USD 14.8m

DPW Holdings, Inc. (NYSE American: DPW), a diversified holding company, has announced that it has eliminated debt totaling approximately USD 2 million from two separate exchange agreements with two creditors, the company said.

As previously announced in early July 2019, the company restructured debt by issuing new convertible debt in the principal amount of approximately USD 2.7 million. During 2019, the principal amount of debt that DPW has either eliminated or restructured exceeds USD 14.8 million.

On July 3, 2019, the company entered into an exchange agreement with an institutional investor pursuant to which, in exchange for the surrender of that certain term promissory note issued by the company to the investor on March 23, 2018, the company issued to the investor a convertible promissory note in the principal amount of USD 1,492,000 with an interest rate of 12% per annum and a maturity date of January 22, 2020. The new note is convertible into shares of the company´s common stock at a conversion price equal to USD 8.80. To date, the investor has converted an aggregate principal amount of USD 860,000 of this note.

The company entered into another exchange agreement on July 2, 2019 with another investor pursuant to which, in exchange for the surrender of certain debt instruments held by this investor, the company issued to the investor a convertible promissory note in the principal amount of USD 1,250,000 with an interest rate of 8% per annum and a maturity date of December 31, 2019. The new note is convertible into shares of the company´s common stock at a conversion price equal to USD 8.80 per share, subject to a floor of USD 4.00. To date, the investor has converted an aggregate principal amount of USD 1,250,000 of this note, though the company remains indebted to this investor in the approximate amount of USD 100,000.

DPW Holdings provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, telecommunications, medical, crypto-mining, and textiles. In addition, the company owns a select portfolio of commercial hospitality properties and extends credit to select entrepreneurial businesses through a licensed lending subsidiary.