dburczyk@noblecapitalmarkets.com, Author at Channelchek

Release – MustGrow Announces Closing of Private Placement of Units for $2,585,000

Posted on January 17, 2025January 17, 2025 by dburczyk@noblecapitalmarkets.com

SASKATOON, Saskatchewan, Canada, January 16, 2025 – MustGrow Biologics Corp. (TSXV:MGRO) (OTC:MGROF) (FRA:0C0) (the “Company” or “MustGrow“) is pleased to announce the closing of the previously announced non-brokered private placement of units (each, a “Unit“) at a price per Unit of $1,000 for aggregate gross proceeds to the Company of $2,585,000 (the “Private Placement“) on January 16, 2025 (the “Closing Date“).

Each Unit is comprised of: (i) $1,000 principal amount of unsecured convertible debentures (the “Debentures“); and (ii) 666 common share purchase warrants (the “Unit Warrants“). Each Debenture may, at the option of the holder: (i) be converted into common shares in the capital of the Company (the “Common Shares“) at price of $1.50 per Common Share (the “Principal Conversion Price“) at any time; or (ii) paid in cash 60 months following the Closing Date (subject to certain acceleration rights). Each Unit Warrant is exercisable by the holder thereof to acquire one Common Share at a price of $1.90 per Common Share for a period of 60 months following the Closing Date. The Debentures accrue interest at a rate of 8% per annum, payable semi-annually in cash.

If, at any time following the date that is 12 months from the Closing Date, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the “TSXV“) is greater than $3.00 for the preceding 30 consecutive trading days, the Company shall have the option to immediately accelerate the conversion of the Debentures at the Principal Conversion Price.

In connection with the Private Placement, certain finders received an aggregate cash fee of $67,200. In addition, the Company issued to certain finders an aggregate of 44,800 non-transferable finder’s warrants (the “Finder Warrants“). Each Finder Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $1.90 per Common Share for a period of 24 months following the Closing Date.

The Company intends to use the proceeds from the Private Placement for inventory production for TerraSante^TM, working capital and general corporate purposes.

The Debentures, the Unit Warrants, the Finder Warrants, and any underlying Common Shares issued pursuant to those securities are subject to a four month plus one day hold period from the Closing Date. The Private Placement remains subject to final approval of the TSX Venture Exchange (the “TSXV“).

Certain insiders of the Company have subscribed for 300 Units under the Private Placement for aggregate gross proceeds of $300,000. Each subscription by an “insider” is considered to be a “related party transaction” for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company did not file a material change report more than 21 days before the Closing Date as the details of the Private Placement and the participation therein by each “related party” of the Company were not settled until shortly prior to the closing of the Private Placement, and the Company wished to close the Private Placement on an expedited basis for sound business reasons. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on section 5.5(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company’s market capitalization. Additionally, the Company is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(b) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company’s market capitalization.

This press release does not constitute, and shall not be construed as, an offer to sell or a solicitation of an offer to buy any Units within the United States.

About MustGrow

MustGrow Biologics Corp. is a fully-integrated provider of innovative biological and regenerative agriculture solutions designed to support sustainable farming. The Company’s proprietary and third-party product lines offer eco-friendly alternatives to restricted or banned synthetic chemicals and fertilizers. In North America, MustGrow offers a portfolio of third-party crop nutrition solutions, including micronutrients, nitrogen stabilizers, biostimulants, and foliar products. These products are synergistically distributed alongside MustGrow’s wholly-owned proprietary products and technologies that are derived from mustard and developed into organic biocontrol and biofertility products to help replace banned or restricted synthetic chemicals and fertilizers. Outside of North America, MustGrow is focused on collaborating with agriculture companies, such as Bayer AG in Europe, the Middle East and Africa, to commercialize MustGrow’s wholly-owned proprietary products and technologies. The Company is dedicated to driving shareholder value through on the commercialization and expansion of its intellectual property portfolio of approximately 112 patents that are currently issued and pending, and the sales and distribution of its proprietary and third-party product lines through NexusBioAg. MustGrow is a public traded company (TSXV-MGRO) and has approximately 51.6 million common shares issued and outstanding and 59.2 million shares fully diluted. For further details, please visit www.mustgrow.ca.

Contact Information

Corey Giasson
Director & CEO
Phone: +1-306-668-2652
info@mustgrow.ca

MustGrow Forward-Looking Statements

Certain statements included in this news release constitute “forward-looking statements” which involve known and unknown risks, uncertainties and other factors that may affect the results, performance or achievements of MustGrow.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”. Examples of forward-looking statements in this news release include, among others, statements MustGrow makes regarding: the receipt of final approval of the TSXV; and the use of proceeds from the Private Placement. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of MustGrow to differ materially from those discussed in such forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, MustGrow. Important factors that could cause MustGrow’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include: the receipt of final approval by the TSXV and those risks described in more detail in MustGrow’s Annual Information Form for the year ended December 31, 2023 and other continuous disclosure documents filed by MustGrow with the applicable securities regulatory authorities which are available on SEDAR+ at www.sedarplus.ca. Readers are referred to such documents for more detailed information about MustGrow, which is subject to the qualifications, assumptions and notes set forth therein.

Neither the TSXV, nor their Regulation Services Provider (as that term is defined in the policies of the TSXV), nor the OTC Markets has approved the contents of this release or accepts responsibility for the adequacy or accuracy of this release.

Release – Kratos Welcomes Ranking Member Adam Smith to Glen Burnie, Maryland Facility

Posted on January 14, 2025January 14, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on KTOS

Representative Smith Briefed on Kratos Erinyes, Dark Fury, Zeus and Other Kratos Hypersonic Systems

SAN DIEGO, Jan. 14, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, recently welcomed House Armed Services Ranking Member Adam Smith (D-WA-9) to Kratos Defense & Rocket Support Services (DRSS) in Glen Burnie, Maryland. The visit provided an opportunity to showcase Kratos’ latest achievements in advancing hypersonic systems, strategic systems, ballistic missile targets, sub-orbital research vehicles, sounding rockets, directed energy and laser systems, and to discuss recent successes delivering mission-critical, cost-effective solutions to support U.S. national security.

During the visit, Rep. Smith was briefed on Kratos’ cutting-edge hypersonic programs, including the low cost Erinyes Hypersonic Flyer, Dark Fury, Zeus Solid Rocket Motors, and other Kratos systems and technologies, all of which exemplify the company’s commitment to affordability, being first-to-market, and innovation. The discussion also highlighted Kratos’ recent award of the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 contract, under which Kratos was selected as the prime for Task Area 1 Systems Engineering, Integration, and Testing (SEIT). This effort includes integrated subscale, full-scale, and air launch systems and services designed to affordably increase hypersonic flight test cadence, a critical need for advancing the nation’s defense capabilities.

“Kratos believes in delivering more for less and is proud to showcase our systems that are pushing the boundaries of hypersonic technology testing to accelerate delivery of low-cost, high-performance solutions to the warfighter,” said Dave Carter, President of Kratos’ Defense & Rocket Support Services Division. “The MACH-TB 2.0 contract is a testament to our leadership and dedication to addressing the Department of Defense’s needs for rapid, reliable, and scalable hypersonic testing and development.”

Rep. Smith’s visit underscores the importance of collaboration between industry and government in advancing technologies critical to national security. Kratos remains steadfast in its mission to deliver affordable, innovative solutions to support the warfighter and strengthen the nation’s defense posture.

Eric DeMarco, Kratos President and CEO, said, “Kratos employees were thrilled to have the opportunity to meet and spend time with Ranking Member Smith, who we believe shares Kratos’ philosophy of “delivering more and better systems for less”. I was also particularly pleased to spend time discussing with the Representative Kratos’ now multi-year strategy and philosophy of investing Kratos’ own research, development and innovation focused funds, to deliver affordable, hypersonic, tactical jet drone, jet engine and other relevant systems to the warfighter.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – NN, Inc. Announces Second Consecutive Year of Record-Setting New Business Wins

Posted on January 14, 2025January 14, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on NNBR

New business awards of $73 million in 2024, bringing two-year total to $136 million

CHARLOTTE, N.C., Jan. 14, 2025 (GLOBE NEWSWIRE) — NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manufactures high-precision components and assemblies, today announced the results of its new business wins program for the year ended December 31, 2024.

Highlights:

Full-year 2024 new business wins were $73 million, exceeding the high end of the Company’s guidance range
Record amount of annualized new business wins results for the second consecutive year
2024 new business wins were $73 million, 2023 new business wins were $63 million, 2022 new business wins were $38.5 million
New wins in 2024 were in the key focus areas of vehicle control, energy efficiency, electrical grid devices, and medical components
NN remains firmly on pace to meet its five-year $325 million new business wins goal, which is the key driver to growing organically to $600 million in sales at 13% adjusted EBITDA margins
NN’s new business pipeline has grown to over $720 million and fully supports the 2025 new win program which is already underway
NN will launch new programs at a higher rate in 2025 and has over $60 million of prior wins in the last 2 years that are not yet incorporated into its sales run-rate
NN has over 50 new business programs underway with Q1 2025 launches; new business is accretive to the Company’s gross margin rates, averaging 16% gross margin
Over the trailing two-years NN has captured $136 million in new wins across 300+ new program awards, and expects to win another 100+ programs in 2025
NN was recently awarded Cummins Innovation Award at year-end 2024 for its work on new products

Harold Bevis, Chief Executive Officer of NN Inc. commented, “We are excited to announce another record year of new business wins in our targeted growth areas. We have delivered a second consecutive year of record-setting commercial results. We are targeting this level of above-market new wins to achieve our five-year goal of growing to $600 million in sales and delivering 13% adjusted EBITDA rates.

A key pilar of the company’s transformation plan has been to pivot back to innovation and growth. Coupled with best-in-class quality and great on-time delivery performance, we are climbing the ranks and becoming an elite and preferred supplier in our targeted areas.” Bevis continued, “We are attacking desirable high-value markets where our unique capabilities and distinct technical advantages can be put in place for true value. We remain committed to working with our customers and partners to strengthen NN’s position as an innovative supplier of choice and delivery of value-added solutions for complex, high precision machined and stamped metal components and assemblies.”

Bevis continued, “We will continue this pace of new business acquisition into 2025 and 2026 and have a $720 million pipeline to support it. 2025 is off to a great start with the simultaneous launch of fifty [50] new programs during the first quarter.”

50 programs are launching from 11 plants in the US, Brazil, France, Poland and China combine to be $20.8 million of annualized sales
For the full-year 2025, we expect to launch eighty [80] new programs of which seventy [70] have already been won

”Our $720 million of new business opportunities has grown more than 40% versus the prior year, and has several focus areas balanced across machined parts, stamped parts, plated parts and complex assemblies.”

Electrical Power pipeline $250+ million, Vehicle Control pipeline $100+ million, Fuel Efficiency & Hybrid pipeline $100+ million, Medical and Industrial pipeline $100+ million
We have built dedicated teams in each area that we are focused upon

”We are solidly on pace to meet our five-year goal of capturing $325 million in new business wins, and in turn growing NN’s revenue organically to $600 million. We also intend to acquire additional revenue above $600 million in certain areas, specifically medical and electrical, and look forward to updating the market with our progress as we win new business, grow our sales, and deliver expanded profits to drive shareholder value creation.”

About NN, Inc.

NN, Inc., a global diversified industrial company, combines advanced engineering and production capabilities with in-depth materials science expertise to design and manufacture high-precision components and assemblies for a variety of markets on a global basis. Headquartered in Charlotte, North Carolina, NN has facilities in North America, Europe, South America, and Asia. For more information about the company and its products, please visit www.nninc.com.

FORWARD-LOOKING STATEMENTS

Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the “Company”) based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “growth,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project,” “trajectory” or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management’s control and that may cause actual results to be materially different from such forward-looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; our ability to secure, maintain or enforce patents or other appropriate protections for our intellectual property; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers’ information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.

Investor Relations:
Joseph Caminiti or Stephen Poe, Investors
NNBR@alpha-ir.com
312-445-2870

Source: NN, Inc.

Release – Kratos Receives New Hypersonic System Program Award with Total Potential Value of Approximately $100 Million

Posted on January 13, 2025January 13, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on KTOS

SAN DIEGO, Jan. 13, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in Defense, National Security and Global Markets, announced today that it has recently received an approximate $100 million total potential value hypersonic system program award. Approximately $15 million of funding has been received by Kratos at contract award, with significant increased funding expected in the second half of Kratos fiscal year 2025. Under the new program contract award, Kratos will provide engineering, systems and hardware. Work related to the program will be performed at secure Kratos fabrication, manufacturing and system integration facilities. Due to competitive, security related and other considerations, no additional information will be provided.

Tom Mills, President of Kratos C5ISR Division, stated, “Kratos’ reputation as the industry leader in delivering military quality hardware, products and systems at scale, was a key factor in the receipt of this new program award. The design, engineering and production of National Security related hardware, that must work every time, is hard, and I am proud of our entire organization’s commitment to the United States and its allies’ mil spec system requirements.”

Eric DeMarco, Kratos President and CEO, said, “Kratos is the recognized industry leader in the rapid development and fielding of affordable hypersonic systems, including Erinyes and Zeus, tactical unmanned jet drone aircraft including Thanatos and Valkyrie, jet engines for aerial drones and missiles and related C5ISR hardware. At Kratos, it’s products today, not PowerPoints of a hoped for, maybe someday system, at an unknown cost. Kratos warfighter and mission focused customers understand that “better is the enemy of good enough and ready to field today”, while reducing development cost and saving money in today’s increasing fiscally challenging environment.”

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing which is a value-add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com.

Press Contact:
Claire Burghoff
Claire.Burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – V2X Names L. Roger Mason to Chief Growth Officer

Posted on January 13, 2025January 13, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on VVX

RESTON, Va., Jan. 13, 2025 /PRNewswire/ — V2X, Inc. (NYSE: VVX) has named L. Roger Mason as Chief Growth Officer, effective January 13, 2025. In this role, Mason will be responsible for driving the company’s growth strategy, identifying new market opportunities, and enhancing business development efforts. He joins the executive team and reports directly to President and Chief Executive Officer, Jeremy C. Wensinger.

Mason joins V2X from Parsons Corporation, where he served as a senior vice president, advising the executive leadership team on market strategy, growth priorities, M&A integration efficiencies, margin expansion, and other key areas for a public company operating in critical infrastructure and national security mission areas. Prior to this, he was the president of Peraton’s Space and Intelligence sector, a $2 billion business delivering hardware and software solutions for national security space, civil space, defense, and intelligence missions.

“We are honored to welcome Roger to V2X,” said Jeremy C. Wensinger, President and CEO of V2X. “His extensive leadership experience and proven track record in driving growth make him a key addition to our executive team as we continue to advance our mission critical solutions and services.”

Mason’s career also includes senior executive leadership positions at Noblis, General Dynamics, and the Institute for Defense Analyses. He holds a PhD in Engineering Physics from the University of Virginia, an MBA from Northwestern University’s Kellogg School of Management, and an MS in Engineering Physics from the University of Virginia. His contributions have been recognized with several prestigious awards, including the National Intelligence Distinguished Service Medal.

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
IR@goV2X.com
719-637-5773

Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
Angelica.Deoudes@goV2X.com
571-338-5195

View original content to download multimedia:https://www.prnewswire.com/news-releases/v2x-names-l-roger-mason-to-chief-growth-officer-302348485.html

SOURCE V2X, Inc.

Release – Comtech Announces Financial Results for the First Quarter of Fiscal 2025

Posted on January 13, 2025January 13, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – January 13, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a global communications technology leader, today reported financial results for its first fiscal quarter ended October 31, 2024. In addition, Comtech separately announced today that its Board of Directors (the “Board”) has named Ken Traub as President and Chief Executive Officer, effective immediately, in addition to his current role as Chairman, and that the Board and management team are undertaking a series of prompt and decisive actions to address the Company’s current challenges and build a stronger company for long-term. That press release can be found on the Company’s investor relations website.

Consolidated Financial Results

Net sales of $115.8 million;
Net bookings of $127.9 million, representing a book-to-bill ratio of 1.10x;
Gross margin of 12.5%;
Operating loss of $129.2 million, net loss of $148.4 million and Adjusted EBITDA loss (a Non-GAAP measure) of $19.4 million;
Funded backlog of $811.0 million; and
Revenue visibility of approximately $1.6 billion.

Business Highlights

Awarded a sole source contract valued at over $50.0 million by the U.S. Navy Information Warfare Systems Command;
Awarded a contract renewal valued at over $30.0 million for critical enhanced 911 call routing services for one of the largest U.S. wireless carriers;
Awarded a large, multi-year location-based services maintenance and support contract valued at over $19.0 million for one of the largest U.S. wireless carriers;
Launched a new Digital Common Ground (“DCG”) portfolio of modems for U.S. government and commercial customers; and
Subsequent to quarter end, appointed Daniel Gizinski as President of the Satellite & Space Communications (“S&S”) segment, adding deep leadership expertise in satellite communications engineering, operations and product strategy.

Mr. Traub commented, “While Comtech’s recent historical performance has been unsatisfactory, the Company has great assets, including its people, technologies, reputation, customers and relationships. Since I joined the Company as Executive Chairman about six weeks ago, I have learned a lot, which gives me confidence that we can overcome the challenges and create new opportunities to strengthen the business and drive value. We are implementing a comprehensive set of initiatives to better position Comtech for the future including improving operational discipline, streamlining operations, supporting profitable growth initiatives, undertaking a broad review of strategic alternatives and strengthening the capital structure. I am honored to expand my role as President and CEO today, and look forward to leading the Company into a stronger and brighter future.”

Consolidated Results Commentary

Consolidated net sales of $115.8 million in the first fiscal quarter declined 23.8% compared to the prior year period, primarily due to the performance of the S&S segment and partially offset by growth in the Terrestrial & Wireless Networks (“T&W”) segment.

Consolidated net bookings were $127.9 million in the first fiscal quarter, a decrease of 31.1% compared to the prior year period. The book-to-bill ratio in the quarter was 1.10x, as compared to 1.22x in the prior year period. This was driven by several large awards in the prior year period, including funding from the U.S. Army related to the GFSR and EDIM contracts and an order from an international customer and reseller of the Company’s troposcatter solutions.

The first fiscal quarter results also reflect Comtech’s prior decisions to divest of its high-power solid-state amplifier (“PST”) and steerable antenna (“CGC”) product lines in fiscal 2024.

Gross profit was $14.5 million, or 12.5% of consolidated net sales, as compared to $47.9 million, or 31.5% of consolidated net sales, in the prior year period. This was driven by a large, high-margin troposcatter sale in the prior year period; higher-than-expected costs at completion for certain nonrecurring engineering-related projects in the satellite ground infrastructure product line; and late delivery penalties related to an international MTTS troposcatter solutions order. Gross profit in the more recent period was also impacted by a non-cash charge of $11.4 million related to the write-down of certain inventories in the S&S segment resulting from the Company’s review of its product portfolio, which is expected to improve the Company’s profitability in future periods.

Operating loss in the first fiscal quarter was $129.2 million, as compared to operating income of $2.1 million for the prior year period, and net loss in the first fiscal quarter was $148.4 million, as compared to $1.4 million in the prior year period. This was primarily due to a non-cash goodwill impairment charge of $79.6 million in the S&S segment; $17.9 million of restructuring costs (including the aforementioned inventory write down); and a non-cash charge of $17.4 million to fully reserve for an unbilled receivable contract asset related to an international customer and reseller of the Company’s troposcatter solutions, among other things.

Adjusted EBITDA loss (a non-GAAP measure) was $19.4 million in the first fiscal quarter, compared to Adjusted EBITDA income of $18.4 million in the prior year period.

Backlog was $811.0 million as of October 31, 2024, compared to $798.9 million as of July 31, 2024.

Revenue visibility, measured as the sum of funded backlog and the total unfunded value of certain multi-year contracts, was approximately $1.6 billion at the end of the quarter.

Satellite and Space Communications Segment Commentary

Net sales in the S&S segment were $58.9 million in the first fiscal quarter, a decrease of 42.5% compared to the prior year period. This was driven by a decline in sales of troposcatter and SATCOM solutions; the impact of the PST divestiture completed in November 2023; and the impact of the CGC divestiture initiated in the fourth quarter of fiscal 2024. The decrease also reflects the impact of late delivery penalties related to an international MTTS troposcatter solutions order.

Net bookings in the S&S segment were $58.4 million in the first fiscal quarter, a decrease of 57.4% compared to the prior year period. The book-to-bill ratio in the quarter was 0.99x, as compared to 1.34x in the prior year period.

Key S&S contract awards and product launches during the first fiscal quarter included:

Securing in excess of $16.0 million of funded orders from the U.S. Army calling for the supply of VSAT equipment and related services;
Receiving more than $8.5 million in incremental funding related to the Company’s U.S. Army EDIM contract;
Awarded over $6.0 million in funded orders from a new international customer for certain frequency-type power amplifiers;
Awarded a production order, valued in excess of $5.0 million, by an existing customer deploying a new LEO constellation (deliveries are anticipated to begin in the mid-2025 timeframe);
Awarded a sole source contract, valued in excess of $50.0 million, by the U.S. Navy Information Warfare Systems Command (the contract has a four-year period of performance, and funded orders received to date are valued at approximately $2.0 million);
Awarded approximately $2.0 million in funded orders from a new international customer of the Company’s ELEVATE™ networking platform; and
Launched the DCG platform, based on the proven success of the Company’s previous software-defined modem platforms.

S&S segment operating loss was $118.8 million in the first fiscal quarter, compared to operating income of $10.1 million in the prior year period, and net loss in the first fiscal quarter was $119.4 million, as compared to net income of $9.3 million for the prior year period. This was driven by a non-cash goodwill impairment charge of $79.6 million; a non-cash charge of $17.4 million to fully reserve for an unbilled receivable contract asset related to an international customer and reseller of the Company’s troposcatter solutions; $13.8 million of restructuring costs (including the aforementioned non-cash charge related to inventory write-downs); $3.0 million of amortization of intangibles; and lower net sales and gross profit in this segment.

Adjusted EBITDA loss in the S&S segment was $21.1 million in the first fiscal quarter, compared to Adjusted EBITDA of $15.1 million in the prior year period, driven by significantly lower net sales and gross profit, and higher selling, general and administrative expenses (due to the aforementioned $17.4 million non-cash charge related to an allowance for doubtful account), offset in part by lower research and development expenses.

At quarter end, the S&S segment had $278.4 million in funded backlog.

Subsequent to quarter end, Daniel Gizinski was appointed as President of the S&S segment, bringing to Comtech over 15 years of experience in satellite communications engineering, operations, product strategy and executive management. He oversees all aspects of this segment, including product development, operations and market expansion.

Terrestrial & Wireless Networks Segment Commentary

Net sales in the T&W segment were $56.9 million in the first fiscal quarter, an increase of 14.9% as compared to the prior year. This growth was driven by higher net sales of call handling and Next Generation 911 (“NG-911”) services, partially offset by lower net sales of location-based solutions.

Net bookings in the T&W segment were $69.4 million in the first fiscal quarter, an increase of 43.4% compared to the prior year period. The book-to-bill ratio in the quarter was 1.22x, as compared to 0.98x in the prior year period.

Key T&W contract wins and renewals during the first fiscal quarter included:

Awarded a contract renewal by one of the largest U.S. wireless carriers, valued in excess of $30.0 million, for critical enhanced 911 call routing services;
Awarded a large, multi-year contract, valued at over $19.0 million, for location-based maintenance and support services for one of the largest U.S. wireless carriers;
Awarded a contract by a municipality located in British Columbia, Canada, valued at more than $2.0 million, for an NG-911 Guardian call handling solution;
Awarded over $1.0 million in funding to continue servicing certain PSAPs in a New England state; and
Awarded over $1.0 million of funding related to an NG-911 deployment in South Carolina.

The T&W segment recorded operating income of $5.3 million in the first fiscal quarter, an increase of 31.6% compared to the prior year period, and net income of $5.3 million in the first quarter, an increase of 28.9% compared to the prior year period. Adjusted EBITDA was $11.0 million, an increase of 14.0% compared to the prior year period. This growth reflects higher net sales, partially offset by a lower gross profit percentage in this segment.

At quarter end, the T&W segment had $532.6 million in funded backlog.

Cost-Savings and Profit Improvement Initiatives

As announced separately today, the Company is conducting a thorough review of processes, product lines, staffing levels and cost structures to identify actions that are expected to meaningfully reduce costs, enable a more efficient and effective organization and improve its cash conversion cycle. To that end, the Company notes that since July 2024, it has significantly progressed with its plans to wind down its steerable antenna operations located in the U.K. (GAAP operating losses related to this product line in fiscal 2024, 2023 and 2022 were $32.3 million, $8.2 million and $9.9 million, respectively). In addition to discontinuing approximately 70 products within the Company’s satellite ground infrastructure product line to focus on higher margin revenue opportunities, the Company has also reduced its global workforce by approximately 13% since July 31, 2024, which represents approximately $26 million in annualized labor costs. Severance associated with such actions approximated $2.8 million, of which $1.1 million will be expensed in the second quarter of fiscal 2025.

Liquidity

Comtech’s cash and cash equivalents were approximately $30 million as of both October 31, 2024 and January 10, 2025. As previously disclosed, on June 17, 2024, the Company entered into a new $222.0 million credit facility. The credit facility was subsequently amended on October 17, 2024, to, among other things, suspend financial covenant testing for the Company’s first fiscal quarter ended October 31, 2024. On October 17, 2024, the Company also entered into a $25.0 million subordinated credit facility.

As of quarter end, aggregated outstanding debt under these two credit facilities was approximately $225 million, before consideration of GAAP related adjustments to reflect offsetting deferred financing costs and discounts related to each facility. Over the next twelve months, commencing with its fiscal quarter ending January 31, 2025, when financial covenant testing resumes, the Company believes that it will not be able to comply with one or more of these covenants. As a result, such debt was presented as “current” on the Company’s condensed consolidated balance sheet as of October 31, 2024.

Strengthening the balance sheet is a top priority for the Company. This includes lowering investments in working capital, reducing debt levels and cash interest costs and regaining compliance with financial covenants. The Comtech Board is confident that Mr. Traub possesses the requisite skill set, track record and experience to oversee these initiatives.

As announced in a separate press release today, the Company’s Board is conducting a comprehensive review of strategic alternatives. This process will include evaluating capital-raising and de-levering opportunities.

Outlook

Comtech is not providing guidance.

Conference Call and Webcast Information

Comtech will host a conference call with investors and analysts today at 8:30 am Eastern Time. Mr. Traub will lead the call, joined by Michael Bondi, Chief Financial Officer; Daniel Gizinski, President of the Satellite and Space Communications segment; and Jeff Robertson, President of the Terrestrial & Wireless Networks segment. A live webcast of the conference call will be accessible on the Investor Relations section of Comtech’s website at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (800) 579-2543 (domestic), or (785) 424-1789 (international) and using the conference I.D. “Comtech.” A replay will be available for seven days by dialing (800) 839-9557 (domestic), or (402) 220-6089 (international).

About Comtech

Comtech Telecommunications Corp. is a leading provider of satellite and space communications technologies; terrestrial and wireless network solutions; Next Generation 911 (“NG911”) and emergency services; and cloud native capabilities to commercial and government customers around the world. Through its culture of innovation and employee empowerment, Comtech leverages its global presence and decades of technology leadership and experience to create some of the world’s most innovative solutions for mission-critical communications. For more information, please visit www.comtech.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release contains, and oral statements made by the Company’s representatives from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “outlook,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding its expectations for its strategic alternatives process, expectations for further portfolio-shaping opportunities, expectations for other operational initiatives, the intended use of proceeds from the Credit Facility and Subordinated Credit Facility, expectations for completing further financing initiatives, future performance and financial condition, plans to address its ability to continue as a going concern, the plans and objectives of management and assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under its control which may cause actual results, future performance and financial condition, and achievement of plans and objectives of management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, among other things: the outcome and effectiveness of the aforementioned strategic alternatives process, further portfolio-shaping opportunities, other operational initiatives, and the completion of further financing activities; its ability to access capital and liquidity so that the Company is able to continue as a going concern; its ability to implement changes in executive leadership; the possibility that the expected synergies and benefits from strategic activities will not be fully realized, or will not be realized within the anticipated time periods; the risk that acquired businesses will not be integrated successfully; impacts from, and uncertainties regarding, future actions that may be taken by activist stockholders; the possibility of disruption from acquisitions or dispositions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that the Company will be unsuccessful in implementing a tactical shift in its Satellite and Space Communications segment away from bidding on large commodity service contracts and toward pursuing contracts for niche products and solutions with higher margins; the nature and timing of receipt of, and performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements; changing customer demands and/or procurement strategies and ability to scale opportunities and deliver solutions to current and prospective customers; changes in prevailing economic and political conditions, including as a result of Russia’s military incursion into Ukraine, the Israel-Hamas war and attacks in the Red Sea region; changes in the price of oil in global markets; changes in prevailing interest rates and foreign currency exchange rates; risks associated with legal proceedings, customer claims for indemnification, and other similar matters; risks associated with obligations under its credit facilities; risks associated with large contracts; risks associated with supply chain disruptions; and other factors described in this and other Company filings with the Securities and Exchange Commission.

Appendix:

Condensed Consolidated Statements of Operations (Unaudited)
Condensed Consolidated Balance Sheets (Unaudited)
Use of Non-GAAP Financial Measures

Release – Comtech Announces CEO Transition and Comprehensive Transformation Initiatives

Posted on January 13, 2025January 13, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

Appoints Kenneth H. Traub as President and Chief Executive Officer, Effective Immediately

Commences Comprehensive Transformation to Immediately Strengthen Company

CHANDLER, Ariz. – Jan. 13, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”), a global communications technology leader, today announced that its Board of Directors (the “Board”) has named Ken Traub as President and Chief Executive Officer, replacing John Ratigan effective immediately. Mr. Traub joined the Comtech Board on October 31, 2024 and became Executive Chairman on November 27, 2024.

Mr. Traub is leading a comprehensive transformation of Comtech. Some highlights of this transformation include:

Operational Discipline and Rightsizing. Comtech is taking decisive action to improve processes, streamline product lines, optimize staffing and sharpen its organizational focus. These actions are expected to result in significant cost savings and working capital efficiencies, particularly in the Company’s Satellite & Space Communications (“S&S”) segment, and position Comtech to generate sustainable positive cash flow.
Support and Grow Successful Business Units. The Company’s Terrestrial & Wireless Networks (“T&W”) segment is poised for continued strong growth, driven by the need for nontraditional methods to request emergency help from new devices and the segment’s new initiatives in public safety technologies. The growth of the Company’s carrier businesswill be supported by its latest cloud-agnostic 5G passive and emergency location, messaging and alerting services. In the S&S segment, Comtech is strong in designing, manufacturing and supporting sophisticated communications equipment for both defense and commercial users that rely on the Company to provide mission-critical communications infrastructure. Comtech will prudently invest in and support these successful businesses and capitalize on opportunities to build and monetize these valuable assets.
Strategic Alternatives Process. TheComtech Board, under Mr. Traub’s leadership, will conduct a comprehensive review of strategic alternatives and explore a range of potential transactions to enhance Comtech’s strategic focus and strengthen the Company’s balance sheet. This process is a broadening of the previously announced review of strategic alternatives for the T&W segment and will include various alternatives for the S&S segment.
Strengthening the Capital Structure. Comtech had available liquidity of approximately $30 million of cash and equivalents as of both October 31, 2024 and January 10, 2025. The Company is positioned to generate positive cash flow over the coming months through implementation of the initiatives described above and will consider opportunities to strengthen its capital structure.

“The Board is fully supportive of Ken’s leadership and committed to his strategy that will deliver immediate and necessary improvements for Comtech,” said former Army Chief Information Officer, Lieutenant General (Retired) Bruce T. Crawford, Lead Independent Director of the Comtech Board.

There can be no assurance that the exploration of strategic alternatives will result in a transaction or other strategic changes or outcomes. There is no timeframe for the conclusion of the process, and the Company does not intend to comment further regarding this matter unless and until further disclosure is determined to be appropriate or necessary.

First Quarter Fiscal 2025 Financial Results: Conference Call and Webcast Information

In a separate press release issued today, Comtech announced its financial results for the first quarter of fiscal 2025. That press release can be found on the Investor Relations section of the Company’s website at www.comtech.com/investors.

Comtech will host a conference call with investors and analysts today at 8:30 am Eastern Time. Mr. Traub will lead the call, joined by Michael Bondi, Chief Financial Officer; Daniel Gizinski, President of the Satellite and Space Communications segment; and Jeff Robertson, President of the Terrestrial & Wireless Networks segment. A live webcast of the conference call will also be accessible at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (800) 579-2543 (domestic), or (785) 424-1789 (international) and using the conference I.D. “Comtech.” A replay will be available for seven days by dialing (800) 839-9557 (domestic), or (402) 220-6089 (international).

About Kenneth H. Traub

Mr. Traub has served as a director on Comtech’s Board since October 2024 and was named as Executive Chairman in November 2024. He is a visionary and transformational corporate leader with a successful track record of building sustainable shareholder value. Mr. Traub has over 30 years of experience as a Chairman, CEO, director and active investor with a demonstrated record of accomplishment in driving strategic, financial, operational and governance improvements. Mr. Traub is adept at managing business challenges, executing turnarounds, optimizing capital allocation, driving operational improvements, implementing M&A and other strategic initiatives and capitalizing on strategic growth opportunities. Mr. Traub received a BA from Emory College in 1983 and an MBA from Harvard Business School in 1988.

About Comtech

Comtech Telecommunications Corp. is a leading provider of satellite and space communications technologies; terrestrial and wireless network solutions; Next Generation 911 (NG911) and emergency services; and cloud native capabilities to commercial and government customers around the world. Through its culture of innovation and employee empowerment, Comtech leverages its global presence and decades of technology leadership and experience to create some of the world’s most innovative solutions for mission-critical communications. For more information, please visit www.comtech.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release contains, and oral statements made by our representative from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “goal,” “outlook,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would,” and similar references to future periods. Forward-looking statements include, among others, statements regarding our expectations for our strategic alternatives process, our expectations for further portfolio-shaping opportunities, our expectations for other operational initiatives, future performance and financial condition, the plans and objectives of our management and our assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under our control which may cause our actual results, future performance and financial condition to be materially different from the results, performance or other expectations implied by these forward-looking statements. Factors that could cause actual results to differ materially from current expectations are described in our filings with the Securities and Exchange Commission. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements. The risks described above are not the only risks that we face. We do not intend to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250112212996/en/

Investor Relations Contact

Maria Ceriello

631-962-7102

investors@comtech.com

Media Contact

Jamie Clegg

480-532-2523

jamie.clegg@comtech.com

Release – Comtech to Report First Quarter Fiscal 2025 Results on January 13, 2025

Posted on January 10, 2025January 10, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CMTL

CHANDLER, Ariz. – Jan. 10, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL) (“Comtech” or the “Company”) today announced that it plans to release its first quarter fiscal 2025 results before the market opens on Monday, January 13, 2025.

At 8:30 a.m. ET that day, Comtech’s leadership team will hold a conference call to discuss the Company’s first quarter fiscal 2025 results, operations, and business trends. A real-time webcast of the call will be available to the public at the investor relations section of the Comtech web site at www.comtech.com. Alternatively, investors can access the conference call by dialing (800) 579-2543 (primary) or (785) 424-1789 (alternate) and using the conference I.D. of “Comtech.” A replay of the call will also be available by dialing (800) 839-9557 or (402) 220-6089 through Monday, January 27, 2025.

About Comtech

Comtech Telecommunications Corp. is a leading global technology company providing terrestrial and wireless network solutions, next-generation 911 emergency services, satellite and space communications technologies, and cloud native capabilities to commercial and government customers around the world. Our unique culture of innovation and employee empowerment unleashes a relentless passion for customer success. With multiple facilities located in technology corridors throughout the United States and around the world, Comtech leverages our global presence, technology leadership, and decades of experience to create the world’s most innovative communications solutions.For more information, please visit www.comtech.com.

Forward-Looking Statements

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109051520/en/

Investor Relations

Maria Ceriello

631-962-7115

Maria.Ceriello@comtech.com

Release – Bit Digital, Inc. Announces Monthly Production Update for December 2024

Posted on January 8, 2025January 8, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on BTBT

NEW YORK, January 8, 2025 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York, announced its unaudited digital asset production, HPC services revenue, and corporate updates for the month of December 2024.

Corporate Highlights for December 2024

The Company had 266 servers (2,128 GPUs) actively generating revenue from its Bit Digital AI contracts, as of December 31, 2024. The Company earned approximately $4.5 million of total unaudited GPU Cloud revenue during the month of December 2024. In addition, the Company received $177K in cash payments from its equipment leasing contract with Boosteroid during the month of December 2024.
Treasury holdings of BTC and ETH were 742.1 and 27,623.9 with a fair market value of approximately $69.3 million and $92.1 million, respectively, on December 31, 2024.
The BTC equivalent¹ of our digital asset holdings as of December 31, 2024, was approximately 1,731.8 or approximately $161.8 million.
The Company had cash and cash equivalents of $98.6 million and total liquidity (defined as cash and cash equivalents, USDC, and the fair market value of digital assets) of approximately $260.4 million in December 2024.

Colocation Services Revenue Highlights

The Company had 14 customers actively generating revenue at its Tier-3 Enovum Data Center facility, as of December 31, 2024.
The Company’s HPC data center colocation revenue was approximately CAD $757.8k (approximately USD $528.1k) in December 2024.
On December 27, 2024, the Company acquired the real estate and building for a build-to-suit 5MW Tier 3 data center expansion project in Montreal, Canada. The Company purchased the site (“MTL2”) for CAD $33.5 million (approximately USD $23.3MM assuming a CAD/USD exchange rate of 0.70) excluding fees. This acquisition is part of the Company’s strategy to expand its HPC data center footprint to 32MW during 2025. This site also comprises part of Bit Digital’s 288MW proprietary pipeline announced earlier this year. The Company expects to spend approximately CAD $27.6 million (approx.USD $19.3MM) to develop the site to Tier-3 standards with an initial gross load of 5MW. The site is expected to be completed and operational by May 2025.

GPU Cloud Highlights

On December 31, 2024, Bit Digital AI entered into a Master Service Agreement and associated purchase order with a new customer, an AI Compute Fund managed by DNA Holdings Venture Inc. The purchase order provides for services utilizing a total of 576 H200 GPUs over a twenty-five (25) month period, terminable by either party upon at least 90 days’ written notice prior to any renewal date. It represents an aggregate revenue opportunity of approximately $20.2 million.

Digital Assets Highlights

In December 2024, the Company produced 32.4 BTC, a 27.8% decrease compared to the prior month. The decrease was primarily driven by a change in the Company’s hosting portfolio, ongoing redeployment of mining assets to new sites, and the retirement of older generation miners.
In December 2024, the Company’s active hash rate was approximately 1.8 EH/s, a 28% decrease compared to the prior month. The decrease was primarily driven by a change in the Company’s hosting portfolio, ongoing redeployment of mining assets to new sites, and the retirement of older generation miners.
The Company purchased 941 S21 mining units for approximately $3.2 million during the month of December 2024.
The Company sold 4,506 S19 mining units for approximately $836.6k during the month of December 2024.
The Company had approximately 21,568 ETH actively staked in native staking protocols as of December 31, 2024.
Bit Digital earned a blended APY of approximately 3.3% on its staked ETH position for the month of December 2024.
The Company earned aggregate staking rewards of approximately 60.6 ETH during December 2024.

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. The Company has established a business line, Bit Digital AI, that offers infrastructure services for artificial intelligence applications. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (“Annual Report”). Notwithstanding the fact that Bit Digital Inc. has not conducted operations in the PRC since September 30, 2021 we have previously disclosed under Risk Factors in our Annual Report: “We may be subject to fines and penalties for any noncompliance with or any liabilities in our former business in China in a certain period from now on.” Although the statute of limitations for non-compliance by our former business in the PRC is generally two years and the Company has been out of the PRC, for more than two years, the Authority may still find its prior bitcoin mining operations involved a threat to financial security. In such event, the two-year period would be extended to five years. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. Future changes in the network-wide mining difficulty rate or bitcoin hash rate may also materially affect the future performance of Bit Digital’s production of bitcoin. Actual operating results will vary depending on many factors including network difficulty rate, total hash rate of the network, the operations of our facilities, the status of our miners, and other factors. See “Safe Harbor Statement” below.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Release – Kratos Awarded $48 Million Contract for Geolocation Global Support Services

Posted on January 8, 2025January 8, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on KTOS

SAN DIEGO, Jan. 08, 2025 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a technology company in the defense, national security and global markets, announced that it was awarded a Geolocation Global Support Services (GGSS) contract in the amount of $48 million.

Kratos will provide support services to Space Forces Space electromagnetic interference managers and supporting elements with EMI resolution services. Work will be performed in Colorado Springs, Colorado, and is expected to be completed by Oct. 31, 2029. Due to customer related, competitive and other considerations, no additional information will be provided regarding the new contract award at this time. The Kratos owned and operated global RF sensor network supplies intelligence across SDA missions through a variety of available services, among them bandwidth monitoring, geolocation, signal characterization, interference mitigation and tracking and maneuver detection, as well as other capabilities. Kratos’ satellite communications experts manage the 24/7 network operations center with coverage of L, S, C, X, and Ku bands. RF data is monitored and collected by Kratos’ global deployment of RF sensors comprising more than 21 worldwide sites hosting more than 190 fixed and steerable sensors and antennas. Kratos internally funded and constructed, its one-of-a-kind, world-wide, Space Domain Awareness network, and currently counts the U.S. government and many of the world’s largest commercial satellite operators as customers for its signal management expertise.

Press Contact:
Claire Burghoff
claire.burghoff@kratosdefense.com

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Release – CVG Announces New Structure to Support Market-Focused Strategy

Posted on January 7, 2025January 7, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CVGI

NEW ALBANY, Ohio, Jan. 07, 2025 (GLOBE NEWSWIRE) — Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, today announced that its Board of Directors has authorized the Company to implement a new organizational structure designed to enhance alignment with its customers and end markets, effective January 1, 2025.

Under this new structure, CVG will reorganize its vertical business units into the following three operating divisions and reporting segments.

Global Electrical Systems
Global Seating
Trim Systems and Components

As part of this realignment, the Company’s Aftermarket & Accessories business unit will be absorbed in these three segments. Its seating and electrical portfolio will transition to Global Seating and Global Electrical Systems, respectively. Its wiper systems will become part of the newly formed Trim Systems and Components business unit in addition to the trim and components businesses from the prior Vehicle Solutions segment.

Russell Ketteringham will lead the seating business as President, Global Seating, transitioning from President, Global Vehicle Solutions. Donald Fishel will lead the new trim systems and components business as President, Trim Systems and Components in addition to his Business Development responsibilities. Peter Lugo will continue to lead the Electrical Systems segment.

In 2024, CVG streamlined its operating model and lowered its cost profile as part of its strategic portfolio rationalization. CVG expects this new structure to enhance clarity and focus, with each business unit positioned to deliver on its specific strategic and operational objectives while executing initiatives to advance key priorities. The realignment better positions CVG for future growth, while lowering corporate and administrative costs to align with the company’s current revenue profile.

“This new organizational structure is an important step in our transformation to become a more agile company that puts our customers and our markets first,” said James Ray, President, and CEO of CVG. “We anticipate that our new structure will accelerate our operational momentum and drive higher growth through a product-focused, customer-centric enterprise strategy.”

CVG expects to begin reporting results under the new reportable segment structure beginning with the first quarter 2025 results, and the Company expects to provide historical quarterly segment results under the new structure at that time as well.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about CVG and its products is available at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

Media Contact:
Patrick Woolford
Director, Communications
Patrick.Woolford@cvgrp.com

Source: Commercial Vehicle Group, Inc.

Release – FreightCar America, Inc. Announces Agreement to Redeem All Outstanding Preferred Shares with New Term Loan

Posted on January 7, 2025January 7, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on RAIL

New financing arrangement reduces Company’s cost of capital by approximately 40%

Further enhances financial flexibility, cash generation and ability to support growth strategy

CHICAGO, Jan. 06, 2025 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today announced it has completed a new term loan facility. The proceeds from the term loan will be used to redeem all outstanding shares of Series C Preferred Stock, as well as settle all related accrued dividends.

Highlights:

The Company closed a $115 million 4-year term loan agreement on December 31^st, 2024 (the “Term Loan”).
Proceeds from the Term Loan were used to redeem all 85,412 shares of Series C Preferred Stock that were outstanding and all accrued dividends as of December 31^st, 2024.
The Term Loan is priced at SOFR + 600, which will reduce the Company’s existing cost of capital by approximately 40%, resulting in savings of approximately $9.2 million in the first year, or approximately $0.26 per share on a fully diluted basis.

Mike Riordan, Chief Financial Officer of FreightCar America, commented, “As further testament to the strength and momentum of FreightCar America, I am extremely pleased to announce that we have taken an important step to improve our capital structure and lower borrowing costs. The completion of this financing along with the retirement of our Series C Preferred Stock enhances our financial flexibility, cash flow generation and allows us to continue executing our growth strategy with even greater confidence and agility.”

For additional information about the Company’s update, please refer to the Company’s Form 8-K filed today with the Securities and Exchange Commission.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Investor Contact RAILIR@Riveron.com

Source: FreightCar America, Inc.

Release – Bit Digital, Inc. Completes Transition from Foreign Private Issuer Status to Domestic Filer Status

Posted on January 6, 2025January 6, 2025 by dburczyk@noblecapitalmarkets.com

Research News and Market Data on BTBT

NEW YORK, January 6, 2025 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York, announced today that as of January 1, 2025, it officially transitioned to domestic issuer status under U.S. securities regulations.

The change reflects the Company’s commitment to transparency, operational growth, U.S. market expectations, and streamlines its regulatory compliance framework.

About Bit Digital

Bit Digital, Inc. is a global platform for high-performance computing (“HPC”) infrastructure and digital asset production headquartered in New York City. Our bitcoin mining operations are located in the US, Canada, and Iceland. For additional information, please contact ir@bit-digital.com or visit our website at www.bit-digital.com.

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