SAN ANTONIO, July 16, 2020 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business market, announced today that its operating subsidiary, T3 Communications, Inc., has selected a financial partner to fund the Company’s previously announced acquisition of Nexogy, Inc., its fourth target acquisition, and its next series of acquisitions. T3 has negotiated and executed a long form term sheet with principal terms on a $20 Million senior secured multi-draw credit facility.
The initial draw from the credit facility will be used to fund the Company’s acquisition of Nexogy, Inc., its fourth acquisition under Letter of Intent, and for working capital. The delayed draw portion of the facility up to the $20 Million will be available for the Company to fund future acquisitions. Management anticipates that the availability under a delayed draw will streamline the acquisition process on select targets in the Company’s pipeline. Although principal terms have been agreed to that includes an exclusivity period, the closing of the senior credit facility is subject to the completion of due diligence, the negotiation, preparation and execution of definitive legal documents, and final approval from the financial partner’s investment committee.
As previously announced, the outside date for closing the transaction with Nexogy, Inc. has been extended to August 14, 2020 and the Company will be seeking FCC approval required for closing on its fourth acquisition. The combined business (T3, Nexogy and fourth acquisition) will serve over 2,600 business customers and approximately 28,000 users while generating over $14 Million in annual revenue with improved EBITDA resulting from cost synergies and consolidation savings.
Arthur L. Smith, Chief Executive Officer of Digerati, commented, “We are very appreciative of the support from our lenders, both current and prospective, that have worked with us over the last several months to continue making progress on our acquisition strategy. We narrowed our funding options to a few alternatives recently and selected a financing partner that has deployed over half a billion dollars in its target industries with a track record of success in technology, media, and telecom investments that could assist us with meeting our near-term objectives as well as our long-term goals. We look forward to disclosing more details on the financing facility, including the name of our financial partner, upon closing the transaction.”
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.
