InterCloud Systems Inc (OTCMKTS:ICLDD)
InterCloud Systems Inc (OTCMKTS:ICLDD) was up by 8.25% in Wednesday’s trading session days after announcing that high ranking executives had agreed to convert personal debt into equity. The debt conversion actions of CEO, Mark Munro, and Board Member, Mark Durfee, are poised to trim the company’s debt by $4.3 million.
According to the CEO, conversion of personal debt into equity demonstrates their commitment to the company’s long term prospects. InterCloud Systems Inc. (OTCMKTS:ICLDD) is currently undertaking an aggressive restructuring plan that seeks to reduce the overall debt. The company also plans to trim salary levels as well as selling, general, and administrative expenses
“We have decided to exchange this debt for preferred equity with special voting rights as part of our plan to fix our balance sheet and increase shareholder equity. Absent a fundamental transaction, this preferred equity will not dilute our shareholders but will have an immediate positive impact on our balance sheet,” said Mr. Munro.
InterCloud Systems Inc (OTCMKTS:ICLDD) bills itself as a leading provider of cloud networking orchestration and automation for Software Defined Networking. The company’s applications and infrastructure segment provides engineering and consulting services.
The professional services segment, on the other hand, provides services to the wireless and wire line industry. The company is fresh from inking a $1 million contract for the provision of professional services to new and existing customers.
Separately, InterCloud Systems Inc (OTCMKTS:ICLDD) has engaged the services of Saddler Gibb & Associates as its new auditing firm. The firm is to audit the company’s financial results for the period ending December 31, 2017. The independent accounting firm replaces WithumSmith+Brown, PC following its dismissal by the board of directors.
InterCloud Systems Inc (OTCMKTS:ICLDD) reported revenues of $13,950 for the first three months of the year down from $17,629 reported the previous year. Operating expenses in the quarter rose to $10,663 from $7,956 reported in Q1 2016. Net loss in the quarter more than tripled to (-$14,237) from (-$4,323) reported last year. In addition, InterCloud Systems Inc (OTCMKTS:ICLDD) has completed a 1:4 reverse stock split of its common stock.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $ICLDD and receive breaking news on other hot stocks by signing up for our free newsletter!
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.