AVCtechnologies Announces Strategic Realignment in Senior Management and Planned Debt Reduction
ATLANTA, July 22, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc (AVCtechnologies; Nasdaq: AVCT) is pleased to announce changes to its Board of Directors and senior management team, effective immediately. Current AVCtechnologies’ Director and Navigation Capital Partners Managing Partner, Darrell Mays, will become the CEO of AVCtechnologies. Mr. Mays is deeply familiar with all aspects of the company’s strategy and operations, as co-founder and former CEO. Mr. Mays brings a wealth of industry experience to his role through senior management positions in telecommunications, including at MasTec and AT&T.
Lawrence E. Mock, Managing Partner with Navigation Capital Partners, will assume the role of Chairman of the Board and Robert Willis, Managing Partner with Navigation Capital Partners, will join the Board as a Vice-Chairman, with responsibility for capital markets and investor relations.
Xavier Williams will step down as CEO and will remain as a member of the Board of Directors as a Vice-Chairman to facilitate the transition of leadership. Under his leadership, the company has made significant strides, including the acquisition of Kandy Communications in December 2020. Current COO, Michael Dennis is also departing AVCtechnologies to pursue other opportunities. The Board of Directors thanks Mr. Williams and Mr. Dennis for their contributions to the business.
The Board is also pleased to announce strategic additions to AVCtechnologies’ management team:
- Kevin Keough, Managing Director, Operations, for Navigation Capital Partners joins the team as President, AVCtechnologies. Mr. Keough brings extensive operational experience to his role with more than 30 years of senior executive leadership experience across public companies including FirstEnergy, private equity portfolio management, and partner-level leadership at McKinsey & Company.
- Chuck Canton has been appointed as President of Kandy, AVCtechnologies’ globally deployed, carrier grade, white-labeled proprietary communications platform. Mr. Canton brings to Kandy deep expertise in technology-enabled businesses and a focus on customer care, through his previous roles as Global Vice President of Customer Success and Operations at Vonage and President of Services and Operations at Compass, a rapidly growing tech-enabled real estate company.
AVCtechnologies is also pleased to announce that it intends to reduce the company’s debt by over 90% by converting over $130 million of outstanding debentures into registered equity securities in accordance with the terms of the debentures.
“We believe these changes will flatten our operational structure, bring us closer to our customers, and strengthen AVCtechnologies’ leadership and balance sheet for continued growth and shareholder value creation,” said Larry Mock, Chairman of AVCtechnologies and Managing Partner of Navigation Capital Partners.
American Virtual Cloud Technologies (“AVCtechnologies”; Nasdaq: AVCT) is a premier global IT solutions provider offering a comprehensive bundle of services including unified cloud communications, managed services, cybersecurity, and enhanced connectivity. Our mission is to provide global technology solutions with a superior customer experience. For more information, visit https://www.avctechnologies.com
American Virtual Cloud Technologies, Inc.
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Caution Regarding Forward-Looking Statements
This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, the Company’s plans to divest Computex Technology Group and to identify and/or complete suitable acquisitions, the consummation of the financing contemplated by the securities purchase agreement dated December 13, 2021, the exercise of outstanding options issued by the Company, and planned future growth. The Company’s actual results or outcomes and the timing of certain events may differ significantly from those discussed in any forward-looking statements, including as a result of the uncertainty associated with being able to identify, evaluate and complete any strategic transaction, the impact of any strategic transaction that may be pursued on the Company’s business, including its financial and operating results and its employees and clients. These statements are based on various assumptions and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including changes in the Company’s clients’ preferences, prospects and the competitive conditions prevailing in the industries in which the Company operates; the Company’s substantial indebtedness; risks associated with the potential effects of COVID-19 on the Company’s business; risks that the recently-acquired Kandy Communications business will not be integrated successfully; ability to retain key personnel; the potential impact of consummation of the Kandy Communications acquisition on relationships with third parties, including customers, employees and competitors; conditions in the capital markets; and those factors discussed in the Company’s amended annual report on Form 10-K filed with the SEC on May 14, 2021 under the heading “Risk Factors,” and other documents of the Company filed, or to be filed, with the SEC. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this report. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this document. Accordingly, undue reliance should not be placed upon the forward-looking statements.