It has been revealed that InterCloud Systems Inc (OTCMKTS:ICLD) has been privy to over $400,000 in new contracts, which all have been awarded in the previous few weeks. From these contracts, the company expects that a large portion of work will be required straight off the bat.
For those who are not aware of the services, which InterCloud Systems provides, the company serves as a cloud networking orchestration, responsible for the development of automation solutions and services.
More details about the awarded contracts
This contract basis, is a good strike for the company, as it will significantly improve their market position, in the long-run as well as the company’s triple bottom line in this fiscal quarter. However, this is not all the company has to gain.
When questioned on the matter, the CEO of InterCloud systems, Mark Munro, stated, “We continue to see higher trading volume and dilution in our stock as lenders exercise their rights to convert the debt into equity. The company is working aggressively to finalize a conventional asset based financing to help with this debt.”
In the same statement, Munro explained how the company plans to mitigate a large portion of their debt, through the new contracts, which recently were acquired. Furthermore, he also revealed that the company is currently in the process of selling off the entities non-core assets, in order to diminish convertible debt.
The reason why convertible debt is so bad for Intercloud Systems
Convertible debt is always a negative impact on the business, as it is the cause of stock dilution, which ultimately can lead to dwindling stocks, and pitiful market shares and opportunities. This is the reason to why the company is working diligently to diminish the total convertible debt in its position, to mitigate the risk of mass-convertible stock dilution.