LOS ANGELES, CA--(NewMediaWire - Feb 9, 2017) - Gawk, Inc.
(OTC
PINK: GAWK), a cloud-based infrastructure-as-a-service
company, today announced the acquisition by a new investor of its
short term convertible notes.
It's management's expectation that due to a more fundamental
investing strategy the new note holders will be less aggressive in
their exit than the current holders.
The new investors have agreed to a leak out provision that
management expects will reduce dilution from stabilized reselling
and allow the company's value to rise to a level more reflective of
the company's real value.
In its most recent 10-Q filing the company announced achieving
operating cash flow positive status and a run rate of $7 million
per year.
"The reason we're undervalued at only a fraction of annual
revenue we feel is due to aggressive selling which we hope to
mitigate with this move," commented CEO Scott Kettle. "This is part
of a continued effort to improve cash flow and reduce dilution
through smart financial restructuring."
About GAWK,
Inc.
GAWK, Inc. offers a suite of cloud communications, cloud
connectivity, cloud computing, and managed cloud-based applications
solutions to small, medium, and large businesses; and offers
domestic and international voice services to communications
carriers worldwide. It offers a suite of advanced data center and
cloud-based services, including fault tolerant, high availability
cloud servers, which comprise platform as a service, infrastructure
as a service, and a content delivery network; managed network
services that converge voice and data applications, structured
cabling, wireless, and security services, as well as include
Internet access via Ethernet or fiber at speeds ranging from 10
Mbps to 10 Gbps; and data center solutions, including cloud
services, colocation services, and business continuity services,
such as storage and security. www.gawk.com
Forward-Looking
Statements
All statements in this release that are not strictly historical
facts are "forward-looking statements." Such forward-looking
statements are based on GAWK's current assumptions, beliefs and
expectations, and involve risks, uncertainties and other factors
that may cause GAWK's actual results to be materially different
from any results expressed or implied by such forward-looking
statements. Some can be identified by the use of words such as
"expect," "plan," "possibility," "offer," "if," "negotiate,"
"when," "believe," "will," "estimate," "continue," and similar
expressions. Risks, uncertainties, and other factors that could
cause or contribute to such differences include, but are not
limited to: ongoing and future intellectual property enforcement
actions; the ability to successfully litigate or settle claims of
patent infringement; GAWK's ability to obtain necessary financing,
generate sufficient cash flow, and maintain appropriate
indebtedness; and the increasing development of market competition
in the area of telecommunications. These factors and others are
described in more detail in GAWK's public filings with the
Securities and Exchange Commission, including the risks discussed
in the "Risk Factors" section in GAWK's Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q. Copies of these reports can be
found on GAWK's website (www.gawk.com) under the heading "Investor
Relations." GAWK is providing this information as of the date of
this release and, except as required by law, does not undertake any
obligation to update any forward-looking statements contained
herein as a result of new information, future events or
otherwise.