The Company’s Balance Sheet Is Strengthened as Investors Agree to Forgive Accrued Interest and Exchange Debt for $1.85 Million of Convertible Preferred Stock
SANTA BARBARA, CA–(Marketwired – June 28, 2016) – CloudCommerce, Inc.(CLWD), a global provider of advanced e-commerce services for leading brands, today announced that it has increased shareholders equity by exchanging $1.85 million of convertible promissory notes held by investors for Series B preferred stock.
As part of the exchange agreement, the investors also agreed to forgive all accrued interest.
CloudCommerce CEO Andrew Van Noy commented, “This exchange reduced our debt and increased our shareholders equity and represents a heightened level of confidence by investors in our Company’s plan for future growth. By strengthening our balance sheet, we are now in a better position to pursue additional acquisitions and fuel organic growth.”
CloudCommerce, Inc. (CLWD) provides advanced e-commerce services to leading brands. Our customers depend on us to help them compete effectively in the $1.6 trillion worldwide e-commerce market. Our comprehensive services include: (1) development of highly customized and sophisticated online stores, (2) real-time integration to other business systems, (3) digital marketing and data analytics, (4) complete and secure site management, and (5) integration to physical stores. Our goal is to become the industry leader by rapidly increasing the number of customers who regularly depend on us and by acquiring other rapidly growing e-commerce service providers. To learn more about CloudCommerce, please visit www.cloudcommerce.com.
Matters discussed in this shareholder letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, products, and prospects for sales, failure to commercialize our technology, failure of technology to perform as expected, failure to earn profit or revenue, higher costs than expected, persistent operating losses, ownership dilution, inability to repay debt, failure of acquired businesses to perform as expected, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.