Eliminates All Derivatives Debts
ATLANTA, GA / ACCESSWIRE / March 8, 2018 / Gopher Protocol Inc. (OTCQB: GOPH) ("Gopher" and the "Company"), a company specializing in the creation of Internet of Things (IoT) and Artificial Intelligence enabled mobile technologies, announced a closing of the sale of a convertible debenture containing a fixed conversion price, which generated $750,000 in gross proceeds. The details on the funding can be found in the Company's Form 8-K - https://www.sec.gov/Archives/edgar/data/1471781/000161577418001621/s109251_8k.htm.
The financing is part of the Company's strategy to reduce its dependence on derivative convertible financing and create a balance sheet that gives investors clarity regarding the number of shares outstanding and potential dilution caused by convertible debenture financing. The investor that participated in this financing may, in its sole discretion, provide additional funding to the Company at similar terms of the current funding.
As previously announced on January 2, 2018 (https://finance.yahoo.com/news/gopher-protocol-closes-growth-financing-140000380.html), an investor, that had previously acquired convertible debt from the Company, invested $1 million in a common equity financing and agreed to potentially purchase an additional $500,000 in its discretion, potentially bringing the total investment to $1.5 million.
"The Company is pleased to be on a great track financially, it should be a very positive signal to the market that in January 2018, a private accreditor investor made the transition from being a lender to an equity investor," stated Greg Bauer, CEO. "We believe the closing of the current convertible debenture with a fixed conversion price supports the notion that the investment community agrees that Gopher is on the right track, going forward," added Greg Bauer, CEO.
Gopher Protocol has made a concerted effort to de-lever its balance and add shareholder equity to the balance sheet. As reported on its most recent Form 8-K, the Company continues to improve its financial outlook by eliminating all derivative liabilities by paying off its reaming derivative liability on March 5, 2018.
Along with the recently announced growth capital financing, the Company is positioned to pursue growth and fund the rollout of its new technologies. The de-levering is part of the Company's strategy to reduce its dependence on variable convertible debt financing and create a balance sheet that gives investors clarity regarding the number of shares outstanding and potential dilution caused by historical variable convertible debt financing.
"We are pleased to make this string of announcements, which we believe is evidence of the fact that we are on track to complete many of the tasks that I have laid out including our absorbing of our recent acquisition, as well as potentially new acquisitions, as we seek to combine our distribution channels with our new technologies," stated Greg Bauer, CEO. "In simple words, the Company's debt schedule following the current funding and the payment of the last derivative liability result in only one outstanding liability of $750,000 that may potentially be converted into common stock at a fixed price," added Greg Bauer, CEO.
About Gopher Protocol Inc.
Gopher Protocol Inc. (GOPH) ("Gopher") (http://gopherprotocol.com/) is a development-stage company which consider itself Native IoT creator, developing Internet of Things (IoT) and Artificial Intelligence enabled mobile technology. Gopher has a portfolio of Intellectual Property that when commercialized will include smart microchips, mobile application software and supporting cloud software. The system contemplates the creation of a global network. The core of the system will be its advanced microchip technology that can be installed in any mobile device worldwide. Gopher envisions this system as an internal, private network between all enabled mobile devices providing shared processing, advanced mobile database management/sharing and enhanced mobile features.
Corporate Site: http://gopherprotocol.com
Press page/ press kit - http://gopherprotocol.com/?page_id=228
Consumer and product website for Guardian Patch: http://www.guardianpatch.com/.
About Guardian Pet Tracker http://www.guardianpettracker.com/
The Guardian Pet Tracker (Sphere Internal name - the "Sphere") system is a derivative technology of Gopher's Guardian Patch technology. The Sphere is designed to provide its users with local tracking capability using a re-chargeable/replaceable battery source. Gopher intends to release pre-production units in limited test in the near future.
GOPH disclosure: More info: SEC link /technology abstract:
Certain statements contained in this press release may constitute "forward-looking statements". Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could 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 views as of any date subsequent to the date of the press release.
Greg Bauer CEO
Gopher Protocol Inc.
VM Only 888-685-7336
SOURCE: Gopher Protocol Inc.