- $281,000 Payoff of Related Party Debt -
- $740,000 Conversion of Shareholder Debt to Equity -
SAN ANTONIO, June 11, 2020 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI) ("Digerati" or the "Company"), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today that the Company has retired $1.021 million of debt.
Out of operational cash flow, the Company fully paid and retired $281,000 in related party debt that matured April 30, 2020 and settled and converted $740,000 in shareholder debt to equity. The payment of the debt will improve cash flow from operations and eliminates the note payable for $281,000 and related interest. The conversion of debt to equity eliminated multiple notes payable from the Company’s balance sheet and the related interest accruals and payments.
Chief Financial Officer Antonio Estrada, Jr., stated, "We are pleased to have paid off the $281,000 operational note from cash flow and converted other Company debt of $740,000 to equity. Eliminating these items from our balance sheet is a solid step toward strengthening Digerati’s financial position."
About Digerati Technologies, Inc.
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its subsidiary T3 Communications (www.T3com.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions, including cloud PBX, cloud mobile, Internet broadband, SD-WAN, SIP trunking, and customized VoIP services, all delivered on its carrier-grade network and Only in the Cloud™. For more information about Digerati Technologies, please visit www.digerati-inc.com.
Forward-Looking Statements
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.
The Securities and Exchange Commission (“SEC”) has provided guidance to issuers regarding the use of social media to disclose material non-public information. In this regard, investors and others should note that we announce material financial information on our investor relations company website, www.TheWaypointRefinery.com, in addition to SEC filings, press releases, public conference calls and webcasts. We use these channels as well as social media to communicate with the public about our Company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, in light of the SEC’s guidance, we encourage investors, the media, and others interested in our Company to review the information we post on the following U.S. social media channels:
| Facebook: Digerati Technologies, Inc. | |
| Twitter: @DIGERATI_IR LinkedIn: Digerati Technologies, Inc. |
The Waypoint Refinery, LLC
(973) 303-9649
www.thewaypointrefinery.com
Investors:
IR@digerati-inc.com
The Eversull Group
Jack Eversull
jack@theeversullgroup.com
(972) 571-1624