LOS ANGELES, CA--(Marketwired - Jan 31, 2017) - GAWK, Inc., (OTC PINK: GAWK) a cloud based, infrastructure-as-a-service company, announced the restructuring of its senior debt facility related to the acquisition of Connexum Acquisition Financing, a reduction in monthly debt service and a corresponding increase in cash flow.
Originally intended to reduce monthly payments by 15% as discussed in a disclosed management conference call, the Company was instead able to achieve a 23% reduction -- from $64k to $49k per month.
After the first 12 months, the payments decrease to $33.5k for the final 6 months. In addition, a $100k discount kicks in if the full balance is paid within 12 months.
"We were pleasantly surprised at the favorability of these terms which exceeded our expectations," commented CEO Scott Kettle. "This move frees up cash we can instead use to accelerate growth from increased investment in technology and talent."
About GAWK, Inc.
GAWK, Inc. offers a suite of cloud communications, cloud connectivity, cloud computing, and managed cloud-based applications solutions to small, medium, and large businesses; and offers domestic and international voice services to communications carriers worldwide. It offers a suite of advanced data center and cloud-based services, including fault tolerant, high availability cloud servers, which comprise platform as a service, infrastructure as a service, and a content delivery network; managed network services that converge voice and data applications, structured cabling, wireless, and security services, as well as include Internet access via Ethernet or fiber at speeds ranging from 10 Mbps to 10 Gbps; and data center solutions, including cloud services, colocation services, and business continuity services, such as storage and security. www.gawk.com
All statements in this release that are not strictly historical facts are "forward-looking statements." Such forward-looking statements are based on GAWK's current assumptions, beliefs and expectations, and involve risks, uncertainties and other factors that may cause GAWK's actual results to be materially different from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words such as "expect," "plan," "possibility," "offer," "if," "negotiate," "when," "believe," "will," "estimate," "continue," and similar expressions. Risks, uncertainties, and other factors that could cause or contribute to such differences include, but are not limited to: ongoing and future intellectual property enforcement actions; the ability to successfully litigate or settle claims of patent infringement; GAWK's ability to obtain necessary financing, generate sufficient cash flow, and maintain appropriate indebtedness; and the increasing development of market competition in the area of telecommunications. These factors and others are described in more detail in GAWK's public filings with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in GAWK's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of these reports can be found on GAWK's website (www.gawk.com) under the heading "Investor Relations." GAWK is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained herein as a result of new information, future events or otherwise.