Benzinga | Dec 14, 2021 04:13PM EST

American Virtual Cloud Technologies Reports Securities Purchase Deal For Sale Of $25M In Equity Securities To Institutional Investor

American Virtual Cloud Technologies, Inc. ("AVCtechnologies" or the "Company") (NASDAQ:AVCT) today announced that it has entered into a securities purchase agreement for a sale of equity securities to an institutional investor. The initial gross proceeds from the current sale will total $25 million, and combined with the November equity raise, may provide up to approximately $76 million of gross cash proceeds to the company in aggregate, if and when all warrants issued pursuant to the transactions are fully exercised.

AVCtechnologies previously announced a strategic focus on acquisitions and organic growth in its cloud technologies business and to explore strategic opportunities for its IT solutions business, including the planned divestiture of Computex Technology Group ("Computex"). The Company expects that the latest placement and expected proceeds from its proposed disposition of Computex will fully fund the Company's current growth plan through 2022 and completely eliminate its debt.

"The newly issued shares of common and preferred stock which result from these placements allow for a broader base of non-affiliated shareholders, which we believe will create a better trading environment for our investors and improved liquidity in the marketplace," said Darrell J. Mays, CEO of AVCtechnologies. "We look forward to deploying these resources and employing our industry-leading suite of products and services to achieve our previously announced revenue guidance."

Larry Mock, AVCtechnologies' Board Chair, said, "This investment will not only strengthen AVCtechnologies' balance sheet but will also improve its agility in the market. I continue to have the utmost conviction in AVCtechnologies' growth prospects."

AVCtechnologies delivers a full suite of cloud-based Unified Communications as a Service (UCaaS) capabilities to its cloud customers through its carrier-grade Kandy Business Solutions including Cloud PBX, Smart Office UC Clients, Collaboration, Contact Center, and SIP Trunks. The projected annual growth of the Kandy Business Unit comes as a result of deeper penetration by existing enterprise customers including IBM, AT&T, and Etisalat and expansion into new customer relationships.