InterCloud Systems, Inc. (OTC Pink: ICLD) is a provider of end-to-end cloud, information technology and network solutions to telecommunication industry and corporate enterprise customers. Shares of the cloud computing company are diving 40% during afternoon trading on Wednesday, August 31, 2016. Over the past three months, InterCloud Systems, Inc has seen average daily volume of around 348,500 shares. However, nearly 2.34 million shares or dollar volume of $397,800 has already exchanged hands through the afternoon trading session Wednesday.
Shares of InterCloud Systems, Inc. are suffering today, after management released an update regarding the stock’s exchange affiliation. The company said they will not appeal NASDAQ’s delisting decision for the stock and will, instead, focus on an OTCQX listing. Management says this will help with greater flexibility, less exchange burden financially and paperwork-wise, and the chance to focus on de-leveraging the company’s balance sheet. Here is the press release detailing of the exchange change:
InterCloud Systems, Inc. Press Release:
SHREWSBURY, N.J., Aug. 31, 2016 (GLOBE NEWSWIRE) — InterCloud Systems, Inc. (the “Company”) (ICLD), a leading provider of cloud networking orchestration and automation solutions and services, today announced that rather than appeal the NASDAQ delisting determination, the Company would seek listing on the OTC-QX.
The Company has embarked on a plan to reduce costs as well as restructure and significantly reduce the debt on its balance sheet. In that regard, and as a first step, the Company announced that it has eliminated more than $14.1 million of debt from its balance sheet in the last week, as well as all derivative liabilities associated with that debt.
Mark Munro, Chairman and CEO of InterCloud, stated, “We have undertaken measures to reduce our operating expenditures, restructure our debt, and divest ourselves of non-core assets. Just this week we eliminated over $14.1 Million in debt from our balance sheet, as well as cash interest payments and derivative liabilities associated with that debt. In order to further these debt restructuring efforts, the Board of Directors determined that it would be more prudent to continue our public listing on the OTC-QX rather than on NASDAQ, in order to take advantage of increased flexibility in effectuating the aforementioned restructuring, as well as postpone the shareholder approved reverse-split. We believe that this is the start of our efforts to substantially de-leverage the Company and become cash flow positive as we grow our industry disruptive Software Defined Networking and Network Function Virtualization services and solutions.”
About InterCloud Systems, Inc.
InterCloud Systems, Inc. is a cloud computing company which provides end-to-end information technology (IT) and next-generation network solutions including Software Defined Networking (SDN) and Network Function Virtualization (NFV) orchestration to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. Additional information regarding InterCloud may be found on InterCloud’s website at www.intercloudsys.com.