Business
InterCloud Reduces Convertible Debt with the sale of High Wire Business Division
InterCloud Reduces Convertible Debt with the sale of High Wire Business Division.
About this update from Intercloud Systems Inc
[{"type":"text","content":"\n\n NEW YORK, March 01, 2017 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (the \"Company\" or \"InterCloud\") (NASDAQ:ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today announced the sale of the High Wire Networks division of ADEX Corporation.  ADEX’s High Wire division contracted with telecommunications infrastructure manufacturers to install the manufacturer’s products. The asset was originally acquired by ADEX in 2014 for less than $1.0 million and accounted for approximately $11.0 million in annual revenue in 2016. Under the terms of this asset sale, InterCloud received $4.0 million in cash and is expected to receive an additional working capital adjustment of approximately $0.9 million, to be paid in six months. The proceeds from this sale were used to reduce secured outstanding debt.\n Mark Munro, CEO of InterCloud stated, “The sale of this non-core business asset is a continued realignment of InterCloud’s business strategy and reduction of our outstanding liabilities. This sale has given InterCloud the opportunity to continue to improve our balance sheet and reduce the amount of convertible debt causing shareholder dilution. We are continuing to explore other non-core asset sales as well as a conventional asset based lending solution, to reduce the exposure to remaining convertible debentures.” About InterCloud Systems, Inc. InterCloud Systems, Inc. is a leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. InterCloud's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to InterCloud rather than the capital expense model that has dominated in recent decades in IT infrastructure management. Additional information regarding InterCloud may be found on InterCloud's website at www.intercloudsys.com. Forward-looking statements: The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, includi...