Kandy and Etisalat Report Record Growth in the Adoption of Unified Communications (UCaaS and CPaaS) Solutions in the Middle East Region

Kandy and Etisalat Report Record Growth in the Adoption of Unified Communications (UCaaS and CPaaS) Solutions in the Middle East Region

Etisalat expands CloudTalk Enterprise Collaboration Solutions with innovative real time communications capabilities for vertical industry sectors powered by Kandy’s growing global partner ecosystem

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ATLANTA, Dec. 28, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc.’s (AVCtechnologies) (Nasdaq: AVCT) Kandy Communications business unit (Kandy), a global leader in secure and intelligent cloud communications, today announced the growth of its partnership with Etisalat, one of the world’s leading telecom groups in emerging markets, along with new offerings enabling embedded communications in business applications for large enterprises in the region.

The Etisalat CloudTalk and Business Edge, powered by Kandy’s Unified Communications and Collaboration platform, is a feature-rich, cloud-based, real-time communications solution that provides over 50,000 end users with a safe, secure, and multi-functional communication and collaboration platform. Etisalat CloudTalk Meeting extends the Etisalat CloudTalk service to mobile workforces, connecting BYOD personnel to the entire company with features including HD video virtual meetings, desktop sharing with screen sharing functionality, whiteboarding using an interactive tool that facilitates creativity, and toll-free audio conferencing.

Etisalat and Kandy are also enabling innovative communications solutions for its enterprise customers. Working closely with key application developers to embed real time communications into critical telehealth applications, Etisalat has enabled leading UAE hospitals, to provide access to healthcare anytime, anywhere, improving the patient experience and medical outcomes.

“It’s been a privilege to work so closely with the visionary team at Etisalat,” said Chuck Canton, President of Kandy. “Our platform is driving digital transformation for Etisalat’s business customers in the Middle East, providing easier, faster, and higher quality communication solutions that keep business moving forward.”

“Not only has Etisalat fully optimized Kandy’s world-class telco cloud platform, they have also engaged with our technology ecosystem partners to build meaningful solutions addressing specific industry needs. It is especially gratifying to be able to make a real difference in the delivery of essential communications services, such as in TeleHealth solutions. We couldn’t be more excited to start the New Year in 2022 with so much momentum and potential.”

Salvador Anglada, CEO, Etisalat Enterprise Digital & GCBO, said: “The success of our CloudTalk solution is an acknowledgement of our focus on addressing the needs of enterprises and governments in the region with advanced communications solutions. We enable users to communicate in real-time via voice, video, and chat on phones, desktop, and mobile application in line with Etisalat’s strategy to ‘Drive the digital future to empower societies’. We are consistently pushing the boundaries to create the world’s best and leading network services across our markets and deliver long-term value to all our stakeholders and accomplishing our goals of driving digital innovation for a better future.”

About American Virtual Cloud Technologies, Inc.

American Virtual Cloud Technologies, Inc. (“AVCT”; 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. American Virtual Cloud Technologies, Inc., acquiredand Kandy Communications in 2020. For more information, visit avctechnologies.com

AVCT Contact: info@avctechnologies.com

About Kandy

Kandy, an AVCtechnologies company, is a cloud-based, real-time communications platform offering proprietary UCaaS, CPaaS, and CCaaS capabilities. Kandy enables service providers, enterprises, software vendors, systems integrators, partners, and developers to enrich their applications and services with real-time contextual communications, providing a more engaging user experience. With Kandy, companies of all sizes and types can quickly embed real-time communications capabilities into their existing applications and business processes. For more information visit kandy.io

About Etisalat

Etisalat Group is one of the world’s leading telecom groups in emerging markets. With consolidated net revenue at AED 51.7 billion and consolidated net profit of AED 9.0 billion for 2020, its high credit ratings reflect the company’s strong balance sheet and proven long-term performance. Headquartered in Abu Dhabi, Etisalat was established over four decades ago in the UAE as the country’s first telecommunications service provider. An international blue-chip organisation, Etisalat Group provides innovative solutions and services to 155.4 million subscribers in 16 countries across the Middle East, Asia and Africa. Etisalat is ranked the strongest brand across all categories in Middle East and Africa by Brand Finance. To learn more visit https://etisalat.com.

Kandy Expands Full PSTN Replacement Services to 40 Countries

Kandy Expands Full PSTN Replacement Services to 40 Countries

Kandy’s Global PSTN voice capabilities now available to countries representing 78% of the world’s GDP

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ATLANTA, Dec. 15, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc.’s (AVCtechnologies) (Nasdaq: AVCT) Kandy Communications business unit (Kandy), a global leader in secure and intelligent cloud communications, today announced that full Public Switched Telephone Network (PSTN) replacement services are now available in Brazil and China, bringing the total number of countries serviced by Kandy’s voice network to 40.

With the latest expansion to Brazil and China, Kandy now offers fully featured telephony services in countries that account for 78% of the world’s Gross Domestic Product (GDP)*. The services provided include local dial tone, local numbers, local number porting, domestic calling, local toll-free, local emergency services, and Lawful Intercept. Furthermore, Kandy offers Inbound DID services in 87 countries and Toll-free services in 105 countries that represent almost 90% of global GDP.

Kandy PSTN Replacement Service Coverage

AustraliaCroatiaGuamMexicoSingapore
AustriaCyprusHong KongNetherlandsSlovakia
BelgiumCzech RepublicHungaryNew ZealandSlovenia
BrazilDenmarkIrelandNorwaySpain
CanadaFinlandItalyPolandSweden
ChileFranceJapanPortugalSwitzerland
ChinaGermanyLithuaniaPuerto RicoUnited Kingdom
ColombiaGreeceLuxembourgRomaniaUnited States

*GDP Gross Domestic Product, Source www.imf.org WEO Database April 2021

“Increasingly, businesses around the world need to connect distributed workforces and customers to improve communications and collaboration for better engagement and more efficient business processes,” said Chuck Canton, President of Kandy. “With the addition of China, we continue to expand the reach of our first class telephony services to both local and global customers as they grow their footprint.”

Kandy’s full PSTN replacement services allow businesses to seamlessly migrate their telephony networks to cloud-based solutions that include UCaaS, CCaaS, CPaaS, and Microsoft Teams Direct Routing, and to normalize mixed telephony environments.

“This expansion reinforces Kandy’s position as a global white-label cloud communications solution provider for our many channel partners, service providers, and large enterprise customers,” Canton explained. “We are excited to grow our portfolio of countries, expanding access to information for customers around the world.”

To provide full PSTN replacement services in a country, Kandy ensures compliance with local regulations, local licensing and registrations, local entities where needed, local taxation, specific criteria for in-country infrastructure including regular audits, local interconnects, and testing with local carriers, to make it easy for its customers to deploy service. To request more information, click Contact Us.

About American Virtual Cloud Technologies, Inc.

American Virtual Cloud Technologies, Inc. (“AVCT”; 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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit avctechnologies.com

AVCT Contact: info@avctechnologies.com

About Kandy

Kandy, an AVCtechnologies company, is a cloud-based, real-time communications platform offering proprietary UCaaS, CPaaS, CCaaS, Microsoft Teams Direct Routing as a Service, and SIP Trunking as a Service capabilities. Kandy enables service providers, enterprises, software vendors, systems integrators, partners, and developers to enrich their applications and services with real-time contextual communications, providing a more engaging user experience. With Kandy, companies of all sizes and types can quickly embed real-time communications capabilities into their existing applications and business processes. For more information visit kandy.io

AVCtechnologies Announces Securities Purchase Agreement

AVCtechnologies Announces Securities Purchase Agreement

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ATLANTA, Dec. 14, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc. (“AVCtechnologies” or the “Company”) (Nasdaq: AVCT) today announced that it has entered into a securities purchase agreement for a sale of equity securities to an institutional investor. The initial gross proceeds from the current sale will total $25 million, and combined with the November equity raise, may provide up to approximately $76 million of gross cash proceeds to the company in aggregate, if and when all warrants issued pursuant to the transactions are fully exercised.

AVCtechnologies previously announced a strategic focus on acquisitions and organic growth in its cloud technologies business and to explore strategic opportunities for its IT solutions business, including the planned divestiture of Computex Technology Group (“Computex”). The Company expects that the latest placement and expected proceeds from its proposed disposition of Computex will fully fund the Company’s current growth plan through 2022 and completely eliminate its debt.

“The newly issued shares of common and preferred stock which result from these placements allow for a broader base of non-affiliated shareholders, which we believe will create a better trading environment for our investors and improved liquidity in the marketplace,” said Darrell J. Mays, CEO of AVCtechnologies. “We look forward to deploying these resources and employing our industry-leading suite of products and services to achieve our previously announced revenue guidance.”

Larry Mock, AVCtechnologies’ Board Chair, said, “This investment will not only strengthen AVCtechnologies’ balance sheet but will also improve its agility in the market. I continue to have the utmost conviction in AVCtechnologies’ growth prospects.”

AVCtechnologies delivers a full suite of cloud-based Unified Communications as a Service (UCaaS) capabilities to its cloud customers through its carrier-grade Kandy Business Solutions including Cloud PBX, Smart Office UC Clients, Collaboration, Contact Center, and SIP Trunks. The projected annual growth of the Kandy Business Unit comes as a result of deeper penetration by existing enterprise customers including IBM, AT&T, and Etisalat and expansion into new customer relationships.

About American Virtual Cloud Technologies, Inc.
American Virtual Cloud Technologies, Inc. (“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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit https://www.avctechnologies.com.

Contact:
Info@avctechnologies.com

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.

Kandy and Braidio Announce Expanded Partnership to Accelerate the Delivery of Digital Transformation as a Service Solutions

Kandy and Braidio Announce Expanded Partnership to Accelerate the Delivery of Digital Transformation as a Service Solutions

The Partnership Drives Growth of Cloud-Based Communications and Next-Gen Customer Engagement

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ATLANTA, Dec. 10, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc.’s (AVCtechnologies) (Nasdaq: AVCT) Kandy Communications business unit (Kandy), and Braidio, the global, award-winning mobile customer engagement platform today announced an expanded partnership that will power next-generation user experiences for an 80,000-user telehealth application and for a pet wellness application by a premier veterinary hospital system in the US servicing 25,000+ customers. Braidio WorkStreams™ threads information, knowledge, people, customers and business tools into a single point of revenue capture and productivity, and in partnership with Kandy, creates more engaging, edge-driven customer engagement experiences for its clients.

Braidio’s Customer Engagement as a Service platform leverages AI, low-code and powerful embedded real-time communications and is enabled by Kandy’s rich Cloud Communications Platform as a Service (CPaaS) capabilities including messaging, chat, voice, video and open APIs which make integrated communications and collaboration intuitive, accessible and scalable across web, mobile and app presences.

Kandy and Braidio have been working with AT&T on the evolution of the AT&T API Marketplace since its launch in 2019, providing businesses with capabilities enabling simpler faster and more efficient ways to communicate with customers in real time. Braidio, on the heels of its recent $50 million investment commitment by Global Emerging Markets and with a proven technology stack that includes the recent acquisition and integration of the AI-powered custom experience platform Leia, is positioned to drive its global expansion alongside Kandy, AT&T and Etisalat.

Kandy’s cloud-based real-time communications solutions enable Braidio to deliver on the healthcare, financial services, retail, construction, pet wellness, and veterinary medicine industries. Together Kandy and Braidio are now offering these solutions to Telcom partners and a global ecosystem of 300 million users and millions of enterprises in over 20 countries.

“Braidio has been an inspiration to us for many years,” said Chuck Canton, President of Kandy. “They bring significant expertise in industry-specific applications that leverage our Communication Platform as a Service capabilities. Industry analysts predict the programmable CPaaS market will exceed $20 billion by 2025, and because of this, enterprise organizations are looking to use programmable communications, such as those offered by Kandy, to redefine how they engage with their customers and employees. This is an exciting time for Kandy, Braidio, and the broader cloud communications industry, and these client wins contribute to our already accelerating user count and market penetration.”

“Braidio WorkStreams™ was an early adopter of the Kandy CPaaS platform and has embedded Kandy within our platform and within our ‘adoption friendly’ bundle of market segment focused turnkey apps for Healthcare, Pet Care, Financial Services, Field Services, and Retail that we distribute into channels such as AT&T, Etisalat and other global channels,” said Iain Scholnick Founder and CEO, Braidio. “The powerful combination of Kandy and Braidio’s platforms makes it possible for us to deliver a deeply integrated joint platform solution for Telco partners to immediately create and deploy tailored, engaging mobile edge experiences to drive new revenues and customer growth. Using Kandy’s CPaaS we help businesses create a better, edge-driven customer experience, more engaging, and accelerate digital transformation and revenue capture across their entire organization.”

About American Virtual Cloud Technologies, Inc.

American Virtual Cloud Technologies, Inc. (“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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit avctechnologies.com

AVCT Contact: info@avctechnologies.com

About Kandy

Kandy, an AVCtechnologies company, is a cloud-based, real-time communications platform offering proprietary UCaaS, CPaaS, CCaaS, Microsoft Teams Direct Routing as a Service, and SIP Trunking as a Service capabilities. Kandy enables service providers, enterprises, software vendors, systems integrators, partners, and developers to enrich their applications and services with real-time contextual communications, providing a more engaging user experience. With Kandy, companies of all sizes and types can quickly embed real-time communications capabilities into their existing applications and business processes. For more information visit kandy.io

About Braidio

Braidio’s award-winning WorkStreams™ Customer Engagement platform is an engine consisting of permissioning, orchestration, AI and low-code to rapidly deploy web, mobile and app Presences that thread all information, knowledge, people, and business tools and customer detail into a single point of Customer Engagement and productivity. The future of work will look very different than it does now. Braidio WorkStreams™ helps accelerate sales and revenue growth, improve customer satisfaction, and simplify employee on-boarding by efficiently spreading knowledge and insights across any workflow and business unit in real-time. Based in San Francisco, Braidio is surrounded by some of the most innovative and disruptive companies in the world. Braidio WorkStreams™ simplifies success. For more information, please visit www.braidio.com or follow us on Facebook and Twitter.

AVCtechnologies Announces Significant Projected Revenue Growth of Kandy, its Cloud Communications Platform

AVCtechnologies Announces Significant Projected Revenue Growth of Kandy, its Cloud Communications Platform

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ATLANTA, Dec. 08, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc. (AVCtechnologies) (Nasdaq: AVCT) today announced that it projects revenues of its Kandy Business Unit to grow from $14.3 million in 2020 to approximately $18.8 million in 2021 and in excess of $37 million in 2022. The significant projected growth is driven by 505% year-over-year subscriber growth (90% CAGR) from January 2019 to today.

AVCtechnologies delivers a full suite of cloud-based Unified Communications as a Service (UCaaS) capabilities to its cloud customers through its carrier-grade Kandy Business Solutions including Cloud PBX, Smart Office UC Clients, Collaboration, Contact Center, and SIP Trunks. The projected annual growth of the Kandy Business Unit comes as a result of deeper penetration with existing service provider and enterprise customers including IBM, AT&T, and Etisalat and expansion into new customer relationships.

“AVCtechnologies is positioned to gain market share as a premier white-label cloud communications provider, checking the CPaaS, CCaaS & UCaaS boxes, while also capitalizing on direct to enterprise capabilities,” said Darrell J. Mays, CEO of AVCtechnologies.

Larry Mock, AVCtechnologies’s Board Chair, said “These market, customer, and product achievements are why I have repeatedly invested in AVCT and its predecessor companies since 2011, why I have never sold a share of the company’s stock, and why I continue to believe in the opportunity.”

AVCtechnologies previously announced a strategic focus on acquisitions and organic growth in its cloud technologies business as well as to explore strategic opportunities for its IT solutions business, including the planned divestiture of Computex Technology Group (Computex).

Please refer to our recent presentation at https://www.ir.avctechnologies.com/investors/presentations/

About American Virtual Cloud Technologies, Inc.
American Virtual Cloud Technologies, Inc. (“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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit https://www.avctechnologies.com.

Contact:
Info@avctechnologies.com

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.

AVCtechnologies Announces $5 Million Equity Financing With Institutional Investor

AVCtechnologies Announces $5 Million Equity Financing With Institutional Investor

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ATLANTA, Nov. 02, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc. (“AVCtechnologies”) (Nasdaq: AVCT) (the “Company”) announced today that it has signed a definitive agreement for a registered direct offering with an institutional investor of 2,500,000 shares of its common stock at a purchase price of $2.00 per share and a Series B Warrant to purchase an additional 2,500,000 shares, for total gross proceeds of $5.0 million, before payment of commissions and expenses. AVCtechnologies would receive an additional $5.0 million in gross proceeds if the Series B Warrant is exercised in full. The Series B Warrant has an exercise price of $2.00 per share, is exercisable on the date of issuance and expires two years from the date of issuance.  Commencing ten trading days after the issuance of the Series B Warrant, the Company may force the investor to exercise its Series B Warrant in the event shares of the Company’s common stock trade at or above $2.40/share for a period of 5 consecutive trading days, subject to certain conditions, including equity conditions.

In a concurrent private placement, for each share of common stock purchased by the institutional investor in the registered direct offering or pursuant to the Series B Warrant, the institutional investor will receive from the Company an unregistered Series A Warrant to purchase one share of common stock. Initially, the Series A Warrant will be exercisable for 2,500,000 shares of common stock, but upon any exercise of the Series B Warrant, the number of shares issuable upon exercise of the Series A Warrant will be increased by the number of shares of the Company’s common stock issued upon exercise of the Series B Warrant.

The Series A Warrants have an exercise price of $2.00 per share, are exercisable on the date of issuance, and expire five years from the date of issuance.

The Company plans to use the net proceeds of approximately $4.5 million from this offering for reduction of debt and working capital.

Northland Capital Markets served as sole placement agent in the transaction. 

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-258136) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). A prospectus supplement describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from Northland Capital Markets, Attention: Heidi Fletcher, 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402, or by calling (612) 851-4918, or by emailing hfletcher@northlandcapitalmarkets.com. Before investing in this offering, interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About American Virtual Cloud Technologies, Inc.
American Virtual Cloud Technologies, Inc. (“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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit https://www.avctechnologies.com.

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.

ConnX Expands Long-Standing Partnership with Kandy, Rolling Out Work from Everywhere Solutions for Large, Distributed Retailers

ConnX Expands Long-Standing Partnership with Kandy, Rolling Out Work from Everywhere Solutions for Large, Distributed Retailers

Companies Demonstrate Cloud Communications Solution Enhancing Customer Experience and Simplifying Communications for IT Teams and Employees In Store and Online

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ATLANTA and PLAINSBORO, N,J., Dec. 02, 2021 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc.’s (AVCtechnologies) (Nasdaq: AVCT) Kandy Communications business unit (Kandy), a global leader in secure and intelligent cloud communications announced today an advance in their long-standing relationship with ConnX, Inc., a leader in digital communications transformation powered by AI and automation.

Following a range of highly successful implementations for physical, digital and hybrid retailers, Kandy and ConnX are unveiling their full-stack real time communications offering designed to meet the specific needs of retailers. The two companies recently transformed a national retail communications network in the US built and managed by ConnX which connects over 80,000 endpoints including physical stores, a contact center, and the retailer’s eCommerce platform. For more information, click to download the case study.

Kandy delivers a full suite of cloud-based Unified Communications as a Service (UCaaS) capabilities to its cloud customers through its carrier-grade Kandy Business Solutions including Cloud PBX, Smart Office UC Clients, Collaboration, Contact Center, and SIP Trunks. Kandy makes all these solutions available through leading channel partners including ConnX and AT&T.

With a unique platform that delivers a comprehensive real time communications solution to mid-size and large global enterprises, including unified voice, data, video, chat, messaging, collaboration, security, and AI-powered service assurance, ConnX currently serves customers in 120 countries with plans to expand services and global reach to meet the growing global demands of existing and new customers.

“We chose Kandy years ago as part of our foundation when we saw the move from legacy voice systems accelerating into pure cloud alternatives,” said Indrajit Ghosh, founder and CEO, ConnX. “We were there from the beginning and are proud to have been not only an early adopter of their as-a-service offerings, but to have contributed to the advancement of their technology stack and capabilities. Our most recent large retail implementation was a huge success and being expanded to include new applications and more seats. We have all the data we need to validate the strength and stability of Kandy’s platform and it’s global reach, together with the innovation and simplicity of our AI/SDWAN, SIP-as-a-Service, and AI-Analytics-as-a-Service offerings tailored for the retail industry.”

“Kandy inspires creativity,” said Chuck Canton, President, Kandy. “Our partners, developers and customers are building world class applications, supported by our team’s ongoing commitment and support. ConnX has been a world-class partner from day one, and one of the largest consumers of our software and cloud- communications platform. Their seamless implementations of increasingly large and distributed private enterprise networks continues to deepen our relationship. Today, by rolling out this exciting industry solution that retailers are looking for, we bring even greater value together as the retail sector continues their digital transformation journey. The ConnX/Kandy solution drives better customer experience, lower total cost of ownership, and opens the door for ongoing creative and competitive advantages.”

Kandy’s growing community of technology and solution partners, systems integrators, application developers and resellers delivers real-time communications in way that are intuitive, immersive, and yet simple, to meet the needs of modern businesses.

About American Virtual Cloud Technologies, Inc.

American Virtual Cloud Technologies, Inc. (“AVCT”; 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. In 2020, American Virtual Cloud Technologies, Inc., acquired Computex Technology Group and Kandy Communications. For more information, visit avctechnologies.com

AVCT Contact: info@avctechnologies.com

About Kandy

Kandy, an AVCtechnologies company, is a cloud-based, real-time communications platform offering proprietary UCaaS, CPaaS, and CCaaS capabilities. Kandy enables service providers, enterprises, software vendors, systems integrators, partners, and developers to enrich their applications and services with real-time contextual communications, providing a more engaging user experience. With Kandy, companies of all sizes and types can quickly embed real-time communications capabilities into their existing applications and business processes. For more information visit kandy.io

About ConnX

ConnX is a Digital Communications Transformation as a Service platform provider that integrates SDWAN, UC collaboration, mobility, security, Artificial Intelligence (AI) and Automation to help enterprise customers transform from fragmented and siloed communications services to an integrated, AI-driven, multi-service collaboration platform. ConnX Maestro Orchestrator enables customers to rapidly realize the benefits of AI and digital transformation to mitigate the challenges associated with communications integration, provisioning, support, maintenance, and migration resulting in lower cost, higher productivity, and a predictable and consistent user experience. For more information, visit connxai.com.