Digerati Technologies Improves Balance Sheet and Reduces Potential Equity Dilution
-Paid Off and Eliminated Two Convertible Notes with Variable-Priced Features-
SAN ANTONIO, TX (GlobeNewswire) – November 12, 2020 – Digerati Technologies, Inc. (OTCQB: DTGI)(“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today that an existing institutional shareholder, which previously consolidated multiple notes with variable-priced conversion features (approximately 70% of the Company’s convertible notes at the time) has made an additional investment into the Company under a new note with fixed-price conversion, allowing Digerati to pay off two notes with variable-priced conversion in full.
The payment in full of the two notes with variable-priced conversion will eliminate the derivative accounting treatment and related P&L expense associated with the notes. The new note matures in October 2021 and further reduces potential equity dilution while providing the Company with additional working capital.
Arthur L. Smith, CEO of Digerati, stated, “This additional investment at a fixed price demonstrates the commitment and enthusiasm of the existing institutional shareholder. It is yet another positive move towards our plan to up-list to the Nasdaq or NYSE American stock exchange as we approach the closing of our next series of acquisitions.”
About Digerati Technologies, Inc.
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its subsidiary T3 Communications (T3com.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions, including cloud PBX, cloud mobile, Internet broadband, SD-WAN, SIP trunking, and customized VoIP services, all delivered on its carrier-grade network and Only in the Cloud™.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.