BATAVIA, Ill., March 10, 2023 (GLOBE NEWSWIRE) — High Wire Networks, Inc. (OTCQB: HWNI), a leading global provider of managed cybersecurity and technology enablement, has exchanged approximately $236,000 in principal and accrued interest of an existing convertible note to the same amount in a conventional loan.
The previous note was convertible into common shares at $0.06 per share. The new loan eliminates this convertible feature, reducing potential share dilution by approximately 4 million shares or 1.4% of the fully diluted shares outstanding. The loan is scheduled to be paid off by August 2023.
The refinancing follows the company’s announcement earlier this week that it completed the sale of its legacy staffing business in a $11.5 million transaction that eliminated other convertible debt and canceled certain Series D preferred shares. The elimination of their conversion provisions reduced the company’s fully diluted shares by 16% and eliminated approximately $325,000 in monthly debt payments. Altogether, this week the company reduced its fully diluted share count by a total of 17% or approximately 60.3 million shares.
Last week the company also renewed its existing revolving credit facility that reduced its fee structure and interest rate by 40%. Following the divesture of the staffing business, the revolver capacity is now $5 million, with about $3.3 million currently available. The company believes this provides more than sufficient additional liquidity to support the company’s outlook for up to 74% revenue growth this year.
According to company CEO, Mark Porter: “These recent transactions are part of a larger initiative we’ve been pursuing over the last several months that has strengthened our capitalization and organizational structure, eliminated high interest convertible debt and secured more favorable financing.
“Our success in these endeavors has allowed us to focus more on securing higher-margin recurring revenue streams with our Overwatch by High Wire™ cybersecurity offering and prepare us for a listing on a major U.S. stock exchange. We believe such a listing will unlock significant shareholder value as it brings greater attention to our strong outlook for growth and profitability and attracts participation by a broader community of investors.”
To learn more about High Wire and its award-winning managed cybersecurity and IT enablement services, visit HighWireNetworks.com or view the company’s free video series on YouTube.
About High Wire Networks
High Wire Networks, Inc. (OTCWB: HWNI) is a fast-growing, award-winning global provider of managed cybersecurity and IT enablement services. Through more than 600 channel partners, it delivers trusted managed services for nearly 1,000 managed security customers and tens of thousands of technology customers. Its end-customers include hundreds of Fortune 500 companies and the nation’s largest government agencies.
The company’s Overwatch by High Wire Networks™ platform offers a range of subscription services for threat prevention, detection and response to meet the security and compliance requirements of organizations large and small. The company’s IT enablement services provide the foundation for growing its higher-margin Overwatch business.
High Wire has 350 employees worldwide and seven U.S. offices, including a U.S. based 24/7 Network Operations Center and Security Operations Center in Chicago, with additional regional offices in Toronto, Puerto Rico and UK.
High Wire was recently ranked by Frost & Sullivan as a Top 12 Managed Security Service Provider in the Americas. It was also recently named to CRN’s MSP 500 and Elite 150 lists of the nation’s top IT managed service providers.
Learn more at HighWireNetworks.com. Follow the company on Twitter, view its extensive video series on YouTube or connect on LinkedIn.
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
Mark Porter, CEO
High Wire Networks
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High Wire Networks
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