Memphis, TN, June 29, 2020 (GLOBE NEWSWIRE) -- Surge Holdings, Inc. (OTCQB: SURG), a holding company with diverse business operations in FinTech, Telecommunications and Media, today announced it has retired the full $4 million of its Convertible Promissory Notes (“Notes”) held by AltCorp Trading LLC (“AltCorp”) and its parent GBT Technologies, Inc. (“GBT”) that were previously issued in connection with the acquisition of ECS in September 2019. The Notes were exchanged for stock at $0.50 per share with a one-year lock-up or leak-out period. Additionally, the Company announced it has cancelled approximately 2.4 million shares for total consideration of $500,000 ($0.21 per share) with a one month option to cancel up to an additional 950,000 shares at the same price per share. Further details on the respective transactions are available in the Company’s Form 8-K, which has been filed with the Securities and Exchange Commission and is available on the Company’s website.
Brian Cox, Chairman and CEO of Surge Holdings, commented, “In addition to the progress and fundamental improvement we have achieved in our business, I am pleased to announce these latest transactions, which significantly enhance our balance sheet and capital structure. Specifically, we have removed $4 million of debt from our balance sheet with the Notes converting at a significant premium to the current market price—another important step towards our planned up-listing to a national exchange. Moreover, the agreement to cancel the outstanding shares reinforces our commitment to maximizing value for shareholders.”
About Surge Holdings, Inc.
Surge Holdings, Inc. and its subsidiaries engage in diverse business activities in FinTech, Telecommunications and Media. For more information on Surge Holdings, its brands or subsidiaries, please visit: https://surgeholdings.com.
Forward Looking Statements
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking terminology such as “believes”, “expects”, “may”, “will”, “should”, “anticipates”, “plans”, or similar expressions or the negative of these terms and similar expressions are intended to identify forward-looking statements. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.
Investor Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: SURG@crescendo-ir.com