ALLENTOWN, PA / ACCESSWIRE / September 24, 2020 / Iota Communications, Inc. (OTC PINK:IOTC) ("IotaComm" or the "Company"), a wireless communication and data analytics software company, is pleased to announce that it has closed on additional financing from AIP Asset Management ("AIP"), providing it with approximately $1 million of net cash proceeds.
"AIP has been a great financing partner for us over the years with investments in the Company totaling $15 million, and we are very pleased that their commitment to provide capital continues as we begin to transition to the next phase of our business," stated Terrence DeFranco, Chief Executive Officer of IotaComm. "We believe that this financing creates great value for our shareholders and is a testament from our largest financing partner of the new vision and strategy we laid out over a year ago. COVID-19 certainly had an impact on our business, but the silver lining is how well our solutions align with the needs of customers in this new world. Our wireless communication platform provides unique capabilities that differentiate us from the competition in a world where remote applications are becoming more prevalent."
The AIP financing is comprised of a $9 million secured convertible replacement note and a $6 million secured convertible royalty note. In connection with the financing transaction, all outstanding notes previously issued by the Company to AIP were cancelled as well as 16,673,800 shares of common stock and 21,350,000 warrants to purchase shares of common stock previously or due to be issued.
Additionally, the Company may elect to convert both notes into units that consist of one share of common stock and one warrant to purchase common stock at a conversion price of $0.12 in the event that certain conditions are met, including obtaining a listing of the common stock on a major national exchange. AIP may elect to convert the notes into the same units at $0.12 anytime before the maturity date. Additional information can be found in the related Form 8-K filed by the Company on September 23, 2020. The Company will use the net financing proceeds to invest in building out its wireless communication infrastructure, accelerate commercialization of the BrightAI platform, expand sales and marketing, and reduce outstanding payables and other debt.
Jay Bala of AIP, stated, "We remain committed and confident in the IotaComm team and believe the Company's stock is poised to appreciate considerably from current levels We believe there is a huge opportunity in the whole low-power wide area network space and IotaComm is uniquely positioned with its 800 MHz spectrum portfolio, business model and software applications. We look forward to continuing to support their efforts in ramping their revenue growth and helping the Company drive value for its common stock."
According to Global Market Insights, the Low Power Wide Area Network (LPWAN) market is expected to reach approximately $25 billion in the US by 2025 with a compound annual growth rate of over 60%. According to Gartner, this LPWAN connectivity will comprise 50% of device connectivity worldwide, with cellular representing 48%.
About AIP Asset Management
AIP is focused on providing growth and special situation financing to emerging companies globally. With substantial financial resources and committed industry expertise, AIP enables its portfolio companies to achieve accelerated growth organically and through acquisitions. AIP considers investments in established businesses with unique assets and quality management teams. AIP specializes in innovative and creative financing solutions for companies that are unable to obtain adequate financing from conventional lending institutions.
About Iota Communications, Inc.
Iota Communications, Inc. (OTC: IOTC) is a wireless communication and data analytics software company that provides Internet of Things solutions which optimize energy efficiency, sustainability, and operations for commercial customers. The Company is built on a foundation of a portfolio of FCC-licensed spectrum that is used to enable low-power, wide area connectivity, which serves as a unique capability in its Smart Building and Smart City data analytics applications. The Company's connectivity and analytics solutions help its customers achieve higher returns on assets and investment and more efficient and productive operations.
For more information about Iota Communications, Inc., please visit: https://www.iotacommunications.com
This press release may contain "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our beliefs regarding the role that IoT will play in the future, our ability to implement our strategic goals, our ability to raise capital and reduce costs, and any other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from those currently anticipated include, but are not limited to: risks related to the acquisition and integration of the assets we acquired from Solbright Group, Inc., risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Corporate & Investors:
Iota Communications, Inc.
600 Hamilton Street, 10th Floor
Allentown, PA 18101
SOURCE: Iota Communications, Inc.
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