DALLAS – COMSovereign Holding Corp., a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today announced it has signed a funding agreement for gross proceeds of $10,000,000 (the "Investment") with Lind Global Asset Management IV, LLC, an investment entity managed by The Lind Partners, a New York based institutional fund manager (together "Lind").
"Today's transaction provides additional liquidity for COMSovereign, allowing us to further invest in increased production across our business units. This capital will enable us to fulfil additional customer purchase orders and advance the ongoing build-out of our Tucson facility, supporting our drone and in-house radio manufacturing activities. I'm especially pleased that Lind, a significant investor in our public offering earlier this year, is demonstrating their continued confidence in COMSovereign through this new investment," said Dan Hodges, Chairman and CEO of COMSovereign Holding Corp. "With this capital, we also are advancing our strategic acquisition efforts, including closing on the Innovation Digital transaction which brings with it immediate licensing revenue, a blue-chip roster of customers and valuable, unmatched intellectual property."
"COMSovereign is at the forefront of 'Made in America' wireless 5G technology and is led by an exceptional team. That is why we invested in the company earlier this year and is why we are pleased to support their growth plans now with this additional investment," said Phillip Valliere, Managing Director at The Lind Partners.
The Investment is in the form of a 10% Original Issue Discount convertible note in the principal amount of $11,000,000 that has a 24-month maturity and a fixed conversion price of $4.50 per share of common stock, subject to adjustment, and warrants to purchase 1,820,000 shares of common stock with an exercise price of $4.50 per share, subject to adjustment. COMSovereign is required to make monthly principal and interest payments, with interest at the rate of 6 percent per annum on the unpaid principal amount of the convertible note, commencing six months after closing. The Company has the right to make principal and interest payments, in whole or in part, in cash or in shares of common stock, subject to certain conditions, and the right to prepay the convertible note at any time with no penalty, subject to the right of the holder to convert up to 25% of the principal amount to be repaid into common stock at the lesser of the conversion price or a price per share tied to the recent market price of the common stock prior to such repayment.
Kingswood Capital Markets, division of Benchmark Investments, Inc., is acting as financial advisor for the Investment.