LOS ANGELES, CA--(Marketwired - Feb 28, 2017) - Gawk, Inc., (OTC PINK: GAWK) a cloud-based infrastructure-as-a-service company, today announced that it has signed an equity purchase agreement (EPA) with GHS Investments, LLC, an institutional investor. The capital will create significant growth capital for GAWK, enabling the execution of its business plan, on favorable terms.
Under terms of the agreement, GAWK has the right, but not the obligation to sell, up to $7 million of its common stock to GHS, in an amount that the Company determines. Scott Kettle, CEO of GAWK, Inc., said, "We intend to use this new infusion of cash from GHS to implement our business plan of acquiring strategic businesses within the cloud communications sector."
Kettle further stated "This move is important because it has resulted in a significant improvement of the terms under which we can access capital on an as needed and when needed basis." The Company intends to use the capital for acquisition - as it has previously disclosed, the Company is "operating cash flow positive" and therefore will focus on using any new capital for strategic growth.
GHS has also participated in the recently announced restructuring of the convertible securities.
Additionally, the Company would like to mention that it has achieved many of the goals that it has set out for 2017, and looks forward to setting, communicating, and achieving, additional goals over the course of the year.
For investor inquiries please call (888) 754-6190 Ext. 3 or email IR@gawk.com
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About GHS Investments LLC
GHS Investments, LLC, is a leading private investment and management group providing financing solutions for high potential small cap enterprises.
About GAWK, Inc.
GAWK, Inc., (OTC PINK: GAWK) 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.