SinglePoint Restructures Toxic Debt with Existing Secured Convertible Promissory Notes, Eliminating Additional Conversions Under the Note, Positioning the Company for Long Term Growth Opportunity in Solar Industry building a National Solar Network
PHOENIX, Oct. 20, 2020 /PRNewswire/ -- SinglePoint Inc. (OTC:SING) announces the Company has restructured two current secured convertible promissory notes (the "Notes") which eliminated a large portion of its existing debt on its balance sheet. Pursuant to the Amendment, the Lenders agreed to refrain from making any conversion under the Notes subject to the terms, amendments, conditions and understandings expressed in the Amendment, extended the maturity date, provided monthly cash payment terms, and removed the toxic derivative debt on the Company's balance sheet. The Agreement outlines a comprehensive restructuring that improves the Company's balance sheet.
"The restructuring of these notes are a significant achievement for the Company, and we are thankful that our existing lenders agreed that a restructuring would benefit the Company and its growth initiatives. The restructuring improves our balance sheet and was one of the critical next steps in our strategic plan as we continue working towards uplisting to a national exchange. Since the filing of our Form 8-K with the SEC last week we have already received increased inquiries by larger mid-tier firms that understand the value of the restructuring the payments of the existing toxic debt into a long-term structure, and we are optimistic for support of SinglePoint's growth initiatives in Solar," states CEO Greg Lambrecht. "We believe that the amendment of these notes is a pivotal accomplishment and that our current market cap does not accurately reflect the value of the Company and the emerging opportunity in solar."
As a result of the of the Amendment to the Notes dated October 12, 2020:
The Company reclassified approximately $2,000,000 of principal due under the Notes from current liabilities to long-term liabilities. The conversion feature on the combined principal and interest (approximately $3,0000,000) was restricted, eliminating the derivative liability associated with this debt and significantly reducing the Company's total derivative liability (the Company's total derivative liability was $3,895,484 as of June 30, 2020).
SinglePoint management believes that this restructuring will open up the Company to accretive growth capital that will enable the Company to facilitate and close additional acquisitions in the solar and renewable energy sector that have a historical revenue base and operational profitability which should increase shareholder value.
The combination of the U.S. residential rooftop and commercial solar market presents a massive opportunity for SinglePoint Inc. and Direct Solar of America. The Company has recently launched its installer acquisition and partnership strategy, leveraging its acquisition of Direct Solar of America, to create a National Solar Network focused on residential and small commercial solar installations. It is currently estimated that only 3% to 4% of the 84 million eligible homes across the U.S. have rooftop panels.
Commercial Solar – projects built on businesses, schools, and government buildings present an emerging opportunity for SinglePoint shareholders in 2020 and beyond. About 3.5% of all commercial buildings have solar and another 1% can be accounted for through community solar subscriptions, where customers buy power from a solar project located in the same utility territory. The addressable market for Commercial Solar equates to approximately 70% of Commercial Buildings in the U.S.
Solar has seen a massive increase in growth over the past years and is projected to continue this growth over the next decade which has been labeled as the Solar+ decade. As recently as last week we have seen the consolidation of Sunrun and Vivint Solar, two of the largest solar companies in the sector. According to Allied Market Research, "The global solar energy market was valued at $52.5 billion in 2018 and is projected to reach $223.3 billion by 2026, growing at a CAGR of 20.5% from 2019 to 2026."
We believe that our acquisition of Direct Solar of America was well timed and anticipate continued revenue growth and increased market share gains as they recently have expanded to cover 38 states, adding and 30+ states in the last 12 months. The company will continue to capture market share and grow its national sales and installer footprint as evidenced by its recent announcements of partnerships with Standard Eco and Stellar Solar.
About SinglePoint Inc. SinglePoint Inc. (OTC:SING) is a fully reporting company with core holdings in Solar Energy Services. Learn More at www.singlepoint.com
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
KEYWORDS: Solar, Solar Panels, Residential Solar, Commercial Solar, Solar Funding, Renewable Energy,