FREMONT, Calif., Nov. 03, 2017 (GLOBE NEWSWIRE) -- Digital Power Corporation (NYSE.AMERICAN:DPW) ("Digital Power" or the "Company"), a company seeking to increase revenues through acquisitions and organic growth, announced today that it has closed on financing of $1.05M for the acquisition of I.AM, Inc., a hospitality group based in Las Vegas, NV. The Company stated Digital Power Lending, LLC, its wholly-owned subsidiary, will provide acquisition financing to I.AM, Inc. and estimates the transaction, if consummated, will add between $9 to $10M to the Company’s consolidated gross revenue in 2018 with approximately $900,000 in EBITDA. The Company reported the funds are in Escrow and has targeted the closing of the transaction for November 30, 2017, subject to successful completion of its due diligence and the completion of the definitive purchase agreement.
The Company continues to fulfill its commitment to its shareholders and its growth strategy as it completes its transformation into a diversified holding company. It is anticipated by the close of 2017 the Company’s name will be changed to DPW Holdings, Inc. and reorganized accordingly:
- Coolisys Technologies, Inc., and its 4 operational companies servicing the defense/aerospace, industrial and commercial sectors and a separate manufacturing division dedicated to fulfilling the requirements of the $50M purchase order from MTIX, Ltd.;
- Digital Power Lending, LLC, a California private lending company strategically providing capital to small and mid-size businesses for an equity interest in addition to loan fees and interest. The Company anticipates Digital Power Lending will be a qualified and licensed California Financial Lender by the end of November 2017;
- Hospitality Group includes I.AM, Inc., subject to the close of the definitive purchase agreement on November 30 or thereabouts, and additional acquisition targets by the Hospitality Group; and
- Avalanche International Corp - the single largest external investment of DPW whose name is targeted to change to MTIX International, Inc. and parent of MTIX, Ltd., the developer and distributor of the innovative, highly-disruptive, proprietary and patented multi-laser surface enhancement (MLSE®) technology targeting the worldwide textile industry. The textile industry is the world’s 2nd largest source of pollution.
“We are proud to be acquiring I.AM, Inc. which will operate as a wholly-owned subsidiary of our newly formed hospitality group and currently has 3 restaurants under contract. I.Am, Inc. is led by the husband and wife team of Deborah and David Krause. Deborah Krause is the former Chief Operating Officer of Pure Management Group of Las Vegas, a $100M hospitality group, while David Krause was its former Chief Marketing Officer. We believe in their leadership and talent and look forward to their management team bringing success to our new partnership,” said Milton “Todd” Ault, III, Executive Chairman of the Company. The Company anticipates raising its full year 2018 revenue guidance upon the close of the transaction.
The Company said no further details could be disclosed at this time and it will further report upon close of the transaction.
About Digital Power Corporation
Headquartered in Fremont, CA, Digital Power Corporation, through its subsidiaries, 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 rugged power solutions. The Company’s wholly owned subsidiary, Coolisys Technologies, Inc. headquartered in Fremont CA, provides world-class technology-based solutions where innovation is the main driver for mission-critical applications and lifesaving services. Coolisys’ growth strategy targets core markets that are characterized by “high barriers to entry” and include specialized products and services not likely to be commoditized. Coolisys Technologies, Inc., www.Coolisys.com, a developer and manufacturer that services the defense, aerospace, medical and industrial sectors, has 3 subsidiaries including Digital Power Limited dba Gresham Power Electronics based in Salisbury, UK, www.GreshamPower.com; Microphase Corporation based in Shelton, CT, 1-203-866-8000, www.MicroPhase.com; and Power-Plus Technical Distributors based in Sonora, CA, 1-800-963-0066, www.Power-Plus.com. Digital Power Lending, LLC, a wholly-owned subsidiary of the Company based in Fremont, CA, and is a California private lending company dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest, www.DigitalPowerLending.com. Excelo, LLC, a wholly-owned subsidiary of the Company, is a national search firm specializing in fulfilling strategic executive, professional and hi-tech placements for businesses delivering world-class services; www.Excelo.com.
As previously reported, subject to shareholder approval, the Company will be undergoing a corporate reorganization, including the reincorporation from the State of California to the State of Delaware and changing its name to DPW Holdings, Inc. to better reflect its new business model as a holding company. In connection with the reorganization, the Company will retain its stock symbol. The Company shareholders will be receiving a proxy statement which will discuss in detail these and other important issues to be voted upon at its annual shareholders meeting.
Digital Power's headquarters is located at 48430 Lakeview Blvd., Fremont, California, 94538; 1-877-634-0982, www.DigiPwr.com. For Investor Relations inquiries: IR@DigiPwr.com or 1-888-753-2235; www.DigitalPowerCorp.com
The foregoing 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, including statements concerning the Company’s ability of completing the definitive purchase agreement to acquire I.AM, Inc., that I.AM, Inc. will achieve anticipated revenues, Digital Power Lending, LLC obtaining its financial lenders license within the anticipated timeframe and that the Company will complete its reincorporation. The Company cautions readers that such “forward looking statements” are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward- looking statements. 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.DigitalPowerCorp.com.
Source:Digital Power Corporation