IRVINE, Calif., Oct. 5, 2016 /PRNewswire/ -- DecisionPoint Systems, Inc., a leading provider and integrator of Enterprise Mobility and IoT solutions, today announced that its stockholders have approved a series of proposals that recapitalize the Company and help position it for continued business success. DecisionPoint's Special Meeting of Stockholders, held on September 30, 2016, approved the following proposals:
- The reverse split of the Company's common stock at a ratio of 500:1,
- The conversion of all outstanding classes of preferred stock to common stock,
- The conversion of outstanding bridge and convertible debt to common stock,
- The conversion of certain payables owed to directors to common stock,
- The re-election of the eight members of the Board of Directors,
- The reloading of the Company's 2014 equity incentive plan to permit new incentive compensation going forward, and
- The ratification of Haskell & White as the Company's independent auditors for 2016
The effect of the reverse split on the company's outstanding common stock and common share price should be observable in public stock market reports beginning on October 5, 2016.
CEO Steve Smith commented, "The Special Meeting marked a new beginning for DecisionPoint Systems. Over the past year there were several business divestitures that helped redirect the Company back to its core competencies. We have reinvigorated our marketing and sales staff and programs and are back on the road to growth. We intend to move forward in the industry segments where our strengths are best recognized and where our market share is strongest, including with retailing, transportation and warehousing. The stockholders have freed the Company from all convertible term and bridge debt. Most importantly, the balance sheet now shows a much improved working capital position. With that, we should be well positioned to continue the turnaround of the Company and raise additional financing to support growth."
CFO Michael Roe added, "We have refinanced and replaced our bank lines at better terms, and are very pleased with the terms of our new three-year agreement with Union Bank and CapitalSource. With the conversion to common stock of all of the Company's old preferred stock, as well as the conversion of all outstanding bridge and convertible term debt to common stock, we have significantly reduced the amount of interest-bearing debt we were previously carrying, and are free of the preferred stock dividend burden that we have had for several years."
The Company believes that the recapitalization may result in a higher bid price for its common stock, and that the reduction in the number of common shares outstanding could increase investor interest and promote greater liquidity for the stockholders.
About DecisionPoint™ Systems, Inc.
DecisionPoint Systems, Inc. delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. We do this by making enterprise software applications accessible to the front-line worker anytime, anywhere.
For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com
Except for historical information contained herein, the statements in this communication may include forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievements in the future to differ materially from forecasted results, performance and achievements. DecisionPoint undertakes no obligation to publicly release the results of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in its plans or expectations.
DecisionPoint™ Systems, Inc.
Chief Financial Officer
(949) 465-0065 Ext. 7025
Rudy Barrio (investors)
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SOURCE DecisionPoint Systems, Inc.