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SuperCom Secures Capital to Support Growth Strategy
TEL AVIV, Israel, Feb. 4, 2021 /PRNewswire/ -- SuperCom (NASDAQ: SPCB ), a global provider of secure solutions for the for the e-Government, IoT and Cybersecurity sectors, announced today the closing of a financing with gross proceeds of $7 million to support the company's growth capital needs.
For the consideration of $7 million in gross proceeds, SuperCom issued a 2-year unsecured, subordinated promissory note to a certain institutional investor. The note has a 5% annual coupon and a built-in increase to the balance of the note by 5% every 6 months, for any portion of the note which has not been paid down prior to maturity. All principal and interest accrued is required to be paid in only one-bullet payment at maturity, and the company has the right to pre-pay any portion of the note at any time without a pre-payment penalty. SuperCom has an option at its discretion only, at any time after 12 months to pay down all or a portion of the note using its ordinary shares, subject to certain conditions being met.
"We are pleased to have secured this capital, which will support our emphasis on expected growth in the future. Numerous wins in government tenders displacing our competition, proprietary technology introducing new abilities and superior performance, and a growing need of nations to utilize electronic monitoring and cyber security technology have positioned us with an opportunity to scale up and focus more on growth," commented company President and CEO Arie Trabelsi.
"Whether we're trying to help our customers with public safety, limiting the spread of Covid-19, or cyber security and identity protection, we believe staying at the forefront of technology innovation is essential. Hence we plan to continue making investments in research and development, as well as investments in sales and marketing to reach more customers, while delivering exceptional service and project management to existing customers. And in turn, we expect to not just maintain, but grow high-margin recurring revenue streams in the future."
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Since 1988, SuperCom has been a global provider of traditional and digital identity solutions, providing advanced safety, identification and security solutions to governments and organizations, both private and public, throughout the world. Through its proprietary e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance and border control services, SuperCom has inspired governments and national agencies to design and issue secure Multi-ID documents and robust digital identity solutions to its citizens and visitors. SuperCom offers a unique all-in-one field-proven RFID & mobile technology and product suite, accompanied by advanced complementary services for various industries including healthcare and homecare, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation.
This press 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. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical or current facts. Examples of these statements include, but are not limited to, statements regarding business and economic trends, the anticipated impact of the COVID-19 outbreak on travel and physical locations and the anticipated impact of such outbreak on our business and results of operations. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These risks and uncertainties include, but are not limited to, the effects of the COVID-19 outbreak, including levels of consumer, business and economic confidence generally, the duration of the COVID-19 outbreak and severity of such outbreak, the pace of recovery following the COVID-19 outbreak, the effect on our supply chain, our ability to implement cost containment and business recovery strategies; and the adverse effects of the COVID-19 outbreak on our business or the market price of our ordinary shares, risks and uncertainties described under the heading "Forward Looking Statements" in any report and the risk factors described in our Annual Report on Form 20-F for the year ended December 31, 2019 and our subsequent filings with the U.S. Securities and Exchange Commission and reports on Form 6-K are uncertain. Except as required by law, we not undertake any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.
SuperCom Corporate Contact:
Ordan Trabelsi, President Americas
Tel: +1 212 466 4606
SOURCE SuperCom Ltd