LOS ANGELES, CA--(Marketwired - Feb 9, 2017) - Gawk, Inc. (OTC PINK: GAWK), a cloud-based infrastructure-as-a-service company, today announced the acquisition by a new investor of its short term convertible notes.
It's management's expectation that due to a more fundamental investing strategy the new note holders will be less aggressive in their exit than the current holders.
The new investors have agreed to a leak out provision that management expects will reduce dilution from stabilized reselling and allow the company's value to rise to a level more reflective of the company's real value.
In its most recent 10-Q filing the company announced achieving operating cash flow positive status and a run rate of $7 million per year.
"The reason we're undervalued at only a fraction of annual revenue we feel is due to aggressive selling which we hope to mitigate with this move," commented CEO Scott Kettle. "This is part of a continued effort to improve cash flow and reduce dilution through smart financial restructuring."
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.