American Virtual Cloud Technologies (AVCT) Announces $15M Securities Purchase Agreement

American Virtual Cloud Technologies, Inc. (Nasdaq: AVCT) today announced that it has entered into a securities purchase agreement for a sale of equity securities to an institutional investor. The net proceeds, after original issue discount, will total $15 million initially, plus an additional $5 million subject to the satisfaction of certain conditions, including receipt of stockholder approval pursuant to Nasdaq listing rules. AVCT will issue shares of a new series of convertible preferred stock, together with warrants, pursuant to the terms of the securities purchase agreement.

AVCT previously announced a definitive agreement to sell its Computex business to Calian Group Ltd. (TSX: CGY), a move that will transition AVCT to a pure-play cloud communications and collaboration company, centered on its premium Kandy cloud-based, real-time communications platform.

The Company expects that this security sale and the expected net proceeds from its planned divestiture of its Computex business will be used to retire all of its existing debt.

Darrell J. Mays, AVCT CEO, said, “Any additional capital received from the sale of these securities and the Computex sale will be used to support the growth of our Kandy business unit.”

Northland Capital Markets served as sole placement agent in the transaction.

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