WPCS Eliminates All $1.7 Million of Unsecured Promissory Notes

SUISUN, CA--(Marketwired - Jul 1, 2015) - WPCS International Incorporated (NASDAQ: WPCS), which specializes in contracting services for communications infrastructure, today announced that it has completed a series of transactions resulting in the elimination of all of its $1,703,000 principal amount of Unsecured Promissory Notes ("Notes"), which were originally due to be paid on September 30, 2015.

According to Sebastian Giordano, Interim CEO of WPCS, "Not only does this eradicate our most pressing short-term cash obligation, but it also generates a corresponding equity increase, a critical factor as we continue working on our plan to regain compliance with the NASDAQ minimum equity requirement."

The $1,703,000 of Notes previously outstanding were eliminated as follows: on June 30, 2015, (i) holders of $1,299,000 principal amount of Notes each converted their respective Notes into 8,435 shares of a new Series H preferred stock with each share of Series H preferred stock currently convertible into 100 shares of the Company's common stock; and (ii) two holders cancelled the aggregate of $400,000 principal amount of Notes as part of a Section 16 settlement. Then, on July 1, 2015, the Company paid the only remaining holder $4,000 in cash to retire such Note. 5,805 of the newly issued Series H preferred stock shares are eligible, for purposes of Rule 144 under the Securities Act of 1933, as amended, to tack the holding period back to the acquisition date of the exchanged Notes. 

About WPCS International Incorporated
WPCS provides contracting services to the public services, healthcare, energy and corporate enterprise markets in the United States. For more information, please visit www.wpcs.com.

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