DPW Holdings converted all of its secured debt, totaling just under $5 million, to equity.
The equity now enables the company to attract more traditional bank financing at prospectively better terms to fund the reduction of production backlogs and the fulfillment of new orders by its subsidiaries Gresham Worldwide and Coolisys Technologies. The company previously announced its support of Coolisys’ entry into the EV charger and ESS power storage market.
“This is an important corporate development for the company, as we have been faced with the inability to raise funds due to the liens on our assets for quite some time, and are immensely pleased that as a result we have made the company more financially sound than it has been for over two years and look forward to our future. Converting the nearly $5 million in secured debt to equity since February 2020 not only strengthens the company’s balance sheet but the absence of liens should allow us to obtain more favorable terms to finance our production backlog, capitalize our future growth through our subsidiaries, provide access to our subsidiaries to more traditional financing including bank debt and lines of credit and make future acquisitions,” Milton (Todd) Ault III, CEO and chairman of DPW, said. “The company set a goal in 5 years, beginning in 2018, to grow to $100 million in gross annual revenue. Despite the impact COVID-19 has had on us, the elimination of the secured debt goes a long way towards helping the company grow organically and through acquisitions. This recent effort and for the past year to improve our balance sheet, reduce expenses and increase profitability should result in greater shareholder value as we execute our plans for the remainder of 2020 and throughout 2021.”
DPW Holdings is a diversified holding company.
