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Lucosky Brookman is a leader in the representation of small and micro-cap companies. The Firm has led it clients through numerous capital raise transaction and over a dozen uplisting and initial public offering transactions.  Access the latest news about Lucosky Brookman, our clients’ business transactions and industry updates here. 

Firm Represents Client Directview Holdings, Inc. in Negotiation and Restructuring of $9,000,000 of Debt, Potentially Cancelling $6,000,000 of Debt

DirectView Holdings, Inc. (DIRV), a public company focused on ownership and management of leading video and security technology companies, today announced that the Company has entered into a $9,000,000 debt restructuring initiative with a high net worth investor that will potentially eliminate approximately $6,000,000 of convertible debt and consolidate the remaining debt to approximately $3,000,000.  The Firm was happy to assist with the restructuring for the long-term benefit of the Company and its shareholders.

On October 3, 2019, the Company entered into a binding Term Sheet For Settlement and Purchase of Convertible Promissory Notes (the “Binding Term Sheet”), by and among the Company and certain private investors (together, the “Sellers”). Pursuant to the Binding Term Sheet, approximately $9,000,000 of the Company’s indebtedness shall be immediately reduced to $3,000,000 upon the sale of $3,000,000 of Company indebtedness to an investor to be thereafter named (the “Purchaser”), thereby effectively reducing and canceling the Company’s indebtedness by approximately $6,000,000. The purchase of the indebtedness shall be undertaken in two tranches – the purchase of $800,000 of indebtedness immediately following the execution of the Binding Term Sheet and the purchase of the remaining $2,200,000 of indebtedness on or before January 31, 2020.

As consideration for the Seller agreeing to enter into the Binding Term Sheet, promptly following the purchase of the first tranche of indebtedness, the Company shall issue to one of the Sellers convertible preferred shares providing for the conversion thereof into $500,000 of the Company’s common stock. The conversion of the preferred shares into common shares shall be valued at a 25% discount to the volume weighted average price of the Company’s common stock during the one (1) trading day immediately prior to conversion. The preferred shares shall have a stated value of $500,000 and shall accrue interest at 12% per annum. In addition, the Sellers have agreed that, during the period following the purchase of the first tranche of indebtedness until the purchase of the second tranche of indebtedness, the Sellers shall not sell or convert any securities currently held in their possession, with the exception of a de minimum number of common shares which were already converted and in the possession of the Sellers. It is intended that the Binding Term Sheet shall be replaced with definitive documents.