Controlling Shareholder Increases Recent Investment from $250K to $750K
Company Confident in Maintaining NYSE:Mkt Listing as it Follows Its Plan
FREMONT, Calif., May 05, 2017 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE MKT:DPW) ("Digital Power" or the "Company"), a growth company seeking to increase revenues through acquisitions and organic growth, today announced that it received an additional investment of $500,000 from its major shareholder, Philou Ventures, LLC, signifying “confidence” in the Company’s management and its ability to meet the NYSE Mkt’s continued listing standards in accordance with Company’s plan. Philou Ventures made the investment of $500,000 through the purchase of 50,000 shares of Series B Convertible Preferred Stock which is convertible into 714,286 shares of Common Stock, based on a $.70 per share conversion price, which is above current market price. The conversion of the Series B Convertible Preferred Stock is subject to shareholder approval to meet NYSE MKT rules.
Since becoming the Company’s largest shareholder in September 2016, Philou Ventures and the Company’s management and Board of Directors have been committed to comply with the NYSE Mkt continued listing standard of achieving $6M or more in equity by June 19, 2017. The Company has communicated regularly with the Exchange and its staff, and the Company is confident that it will be compliant by, if not before, June 19, 2017.
Mr. Milton “Todd” Ault, III, the Company’s Chairman said, “The Company has been executing its plan and is confident that by June 19, 2017 the continued listing standard will be met. Although the Exchange’s most recent letter may be negatively perceived by shareholders and the public, in light of the Company’s disclosure in its SEC reports of the Exchange’s minimum shareholders’ equity listing standard, the Exchange’s letter was anticipated. Philou acquired its interest in the Company with the knowledge of the necessity of meeting the Exchange’s continued listing standards. Philou committed to the Company’s management and its Board of Directors that the NYSE Mkt continued listing standard would be met and have the resources necessary to build revenues through organic growth and pursue an acquisition growth strategy in 2017 and beyond. The commitment and effort made by the Company’s management, Board and controlling shareholder have not waned.”
For more information regarding this purchase, please review the Company’s Form 8-K which will be filed with the SEC at www.SEC.gov by the close of business on May 5, 2017.
About Digital Power
Headquartered in Fremont, CA, Digital Power Corporation designs, manufactures and sells high-grade customized and off-the-shelf power system solutions. Our products are used in the most demanding communications, industrial, medical and military applications where customers demand high density, high efficiency and ruggedized power solutions. The Company’s wholly owned subsidiary, Digital Power Limited which does business as Gresham Power Electronics, is based in Salisbury, UK. Digital Power's headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982. Website: www.digipwr.com.
For Investor Relations inquiries: IR@digipwr.com or 1-888-753-2235.
Forward Looking Statements
The foregoing press release contains “forward looking statements” regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking statements include, but are not limited to, that the Company will meet the NYSE MKT’s continued listing standards by June 19, 2017. The Company disclaims any current intention to update its “forward looking statements,” and the estimates and assumptions within them, at any time or for any reason. More information about potential risk factors that could affect the Company’s business and financial results are included in the Company’s most recent filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available on the Company’s website at www.digipwr.com.
Source:Digital Power Corporation