DPW Holdings (NYSE American: DPW), recently announced its entrance into definitive agreements for the sale of $6 million of its common stock and warrants in a registered direct offering to new and existing institutional and accredited shareholders of the company. Per the agreement, DPW will issue 7,691,775 shares of common stock at a purchase price of $0.78 per share. Additionally, investors will receive five-year warrants to purchase shares of common stock at an exercise price of $0.94 per share. Warrants to purchase up to 1,922,944 shares will be immediately exercisable, with the remainder exercisable six months after the closing date. Subject to customary closing conditions, the offering is expected to close on or about May 17, 2018.
“This capital raise is strategic, providing both working capital and funding to execute our growth strategies including completing the acquisition of Enertec Systems,” DPW Holdings CEO and chairman Milton “Todd” Ault, III stated in the news release.
The company also announced its entry into a Securities Purchase Agreement with an institutional investor for the issuance of a senior secured convertible promissory note with a principal face amount of $6 million; a five-year warrant to purchase 1,111,111 shares of common stock at an exercise price of $1.35; a five-year warrant to purchase 1,724,138 shares of common stock at an exercise price of $0.87 per share, and 344,828 shares of common stock. Subject to NYSE American approval, the shares of common stock as well as the shares underlying the warrants will in connection to this agreement will be registered in accordance with DPW’s current shelf registration statement on Form S-3. The note is only convertible by the lender upon default by the company.
About DPW Holdings, Inc.
Headquartered in Newport Beach, CA, DPW Holdings, Inc., is a diversified holding company a growth strategy of acquiring undervalued assets, disruptive technologies, sustainable solutions, and exciting ventures for incubation and development to their full potential for long-term growth and investor returns. The company, through its wholly-owned subsidiary, Coolisys Technologies, Inc., provides technology-based solutions where innovation is the main driver for mission-critical applications and lifesaving services. Coolisys serves the defense, aerospace, naval, homeland security, medical, telecom, datacom, and industrial markets. Coolisys manages four entities including Digital Power Corporation, a manufacturer of power electronics and technology based in Northern California; Digital Power Limited dba Gresham Power Ltd., a designer and manufacturer of power distribution systems primarily for Naval use based in Salisbury, UK.; Microphase Corporation, a designer and manufacturer of microwave electronic technology with its headquarters based in Shelton, CT; and Power-Plus Technical Distributors, a value-added wholesale distributor based in Sonora, CA. Digital Power Lending, LLC, a wholly owned subsidiary of the company, is based in Fremont, CA, and is a California private lending company operating under Financial Lender’s License ##60DBO-77905 dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest. Super Crypto Mining, Inc. is a wholly-owned subsidiary of the company, is based in Fremont CA that leverages its engineering expertise and existing locations to create crypto currency mining facilities across the globe. Super Crypto Mining, Inc. operates the branded division, Super Crypto Power. Excelo, LLC, a wholly-owned subsidiary of the company, is a national search firm specializing in fulfilling strategic executive, professional and hi-tech placements for businesses delivering world-class services. For more information, visit the company’s website at www.DPWHoldings.com.
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