InterCloud Systems Inc (OTCMKTS:ICLD) Sells High Wire Business Division

InterCloud Systems Inc (OTCMKTS:ICLD), a major provider of cloud networking arrangement and automation services and solutions, reported the sale of the High Wire Networks segment of ADEX Corporation. High Wire unit contracted with telecom infrastructure manufacturers to fit the manufacturer’s goods.

InterCloud reported that the asset was initially bought by ADEX in 2014 for not more than $1 million and accounted for almost $11 million in yearly revenue in 2016. As per the terms of this reported asset sale, the company obtained $4 million in cash and is anticipated to get an additional working capital correction of almost $0.9 million, to be compensated in six months. The funds from this sale were utilized to mitigate secured outstanding debt.

Mark Munro, the CEO of InterCloud reported that the sale of non-core business property is a continued realignment of company’s business plan and reduction of outstanding liabilities. This sale has given company an opportunity to continue to enhance balance sheet and reduce convertible debt leading in shareholder dilution. The company is continuing to seek other non-core asset sales and conventional asset dependent lending solution, to lower the exposure to outstanding convertible debentures.

Mark Munro, CEO of InterCloud stated, “The sale of this non-core business asset is a continued realignment of InterCloud’s business strategy and reduction of our outstanding liabilities. This sale has given InterCloud the opportunity to continue to improve our balance sheet and reduce the amount of convertible debt causing shareholder dilution. We are continuing to explore other non-core asset sales as well as a conventional asset based lending solution, to reduce the exposure to remaining convertible debentures.”

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