Funding from Senior Secured Creditor to Spur Cashflow from $17.5M in Current Contract Work
Newport Beach, Calif., Dec. 30, 2018 (GLOBE NEWSWIRE) -- DPW Holdings, Inc. (NYSE American: DPW), a diversified holding company (“DPW” or the “Company”), announced today that two of DPW’s subsidiaries have received $700,000 in debt financing to boost its effort to reduce the order backlog for the defense sector businesses of Coolisys Technologies, Inc. (“Coolisys”) including its subsidiary, Enertec Systems 2001, Ltd. and Microphase Corporation Inc.. The backlog of these businesses currently comprises $17,500,000 of the $71,000,000 reported overall for the Company, and which are often single-source supplier orders. For fiscal year 2019, the gross profit margin for the $10,500,000 of the backlog is estimated to be 28% while the remaining backlog of $7,000,000 has a gross profit margin of approximately 40%.
Amos Kohn, CEO and President of Coolisys, said, “This funding is strategic as it begins our renewed efforts to reduce the value in our backlogged orders and spur our anticipated growth from both new and recurring orders throughout 2019. We reiterate that the Company’s focus for 2019 has transitioned to revenue growth and profitability and unlocking value for our shareholders through the integration and expansion of our operations within the defense sector. For 2019, Coolisys and the Company expect to be able to recognize the full value of all defense sector revenue when compared to 2018, a year of growth through acquisition and marginal revenue recognition.”
The funding for the defense sector businesses is from a transaction with the Holder pursuant to 10% simple annual interest and other terms, as disclosed in the Form 8-K dated December 31, 2018.
For more information, DPW recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at www.DPWHoldings.com or available at www.sec.gov.
About DPW Holdings, Inc.
DPW Holdings, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies that hold global potential. Through its wholly owned subsidiaries and strategic investments, the Company 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. DPW’s headquarters are located at 201 Shipyard Way, Suite E, Newport Beach, CA 92663; www.DPWHoldings.com.
The foregoing 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. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.DPWHoldings.com.
Mary Magnani and Kirsten Chapman, LHA Investor Relations, 415.433.3777, firstname.lastname@example.org