NEW YORK, June 9, 2020 /PRNewswire/ -- Pareteum Corporation (Nasdaq: TEUM), (the "Company"), a global cloud communications platform company, today announced that the Company closed the issuance of $17.5 million in Senior Secured Convertible Notes, with warrants, to an institutional investor. The net proceeds to the Company will be $14 million. The net proceeds from the financing will be used for working capital, general corporate purposes, growth initiatives and new product development.
"This financing strengthens Pareteum's balance sheet, provides working capital, and allows us to reinvest in growing the business," said Bart Weijermars, Interim Chief Executive Officer of Pareteum. "Our team is focused on delivering exceptional customer experiences during this challenging market environment. Our software platform benefits new and existing customers by enabling them to meet their growing competitive requirements for global connectivity and collaboration. We now have the ability to invest further in our proprietary technology, which will well position the Company to capitalize in this disruptive and growing global marketplace."
More information regarding the financing may be found on Form 8-K dated June 8, 2020 on file with the Securities and Exchange Commission.
About Pareteum Corporation
Pareteum is an experienced provider of Communications Platform as a Service solutions. Pareteum empowers enterprises, communications service providers, early stage innovators, developers, IoT, and telecommunications infrastructure providers with the freedom and control to create, deliver and scale innovative communications experiences. The Pareteum platform connects people and devices around the world using the secure, ubiquitous, and highly scalable solution to deliver data, voice, video, SMS/text messaging, media, and content enablement. For more information please visit: www.pareteum.com.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. We discuss many of these risks, uncertainties and assumptions in Item 1A under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018, as updated by our other filings with the SEC. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in the Company's filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from the Company.