Convertible Debt Elimination Avoids Potential Equity Dilution
TOCCOA, GA / ACCESSWIRE / November 14, 2019 / Galaxy Next Generation, Inc. (OTCQB:GAXY) (“Galaxy” or the “Company), a provider of interactive learning technology solutions, is pleased to report that it has fully repaid and satisfied $1.5 million of convertible notes. The notes were initially issued on May 1, 2019 and had become due and convertible into common stock at a discount to market.
Gary LeCroy, Galaxy’s Chief Executive Officer, commented, “As an emerging growth micro cap publicly traded company, we had to do what was needed to survive and grow our business. With that said, we were grateful to attract funding from institutional convertible notes. However, as the notes matured and recently became convertible into common stock, we realized the negative effect on dilution and our stock price. We are pleased that an existing equity holder shares our long-term strategy and vision and provided funding to the Company in order to pay off $1.5 million of convertible notes. At this time, there are no other convertible notes that have become due and have the ability to convert into equity. Our team is in active discussions with the other holders of convertible notes and additional funding sources.”
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB:GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy’s products include Galaxy’s own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy’s distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company’s products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products – comprising nearly 90% of Galaxy’s sales.
For additional information, please visit our website at: www.galaxynext.us
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company’s current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company’s business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Galaxy Next Generation, Inc.
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