InterCloud Systems Inc. (OTCMKTS: ICLD) has had its priorities realigned and the management says all that is in the best interest of shareholders. One of the major issues that have recently hanged around the company is the matter of its continued listing on NASDAQ Stock Market. InterCloud recently provided a shareholder update on how the board decided on the issue of the company’s public listing.
No appealing NASDAQ delisting
InterCloud Systems Inc (OTCMKTS: ICLD) had fallen short of the continued listing requirement on NASDAQ. The company considered a number of options such as reverse splitting of its stock to regain compliance, but it got to a point where the board and the management made up their mind that they shouldn’t appealing NASDAQ’s delisting determination. That has seen the stock move the listing of its stock to OTC Market.
No reverse split
InterCloud has also decided to postpone a reverse split of its stock, a transaction that if implemented would increase the company’s share price without affecting the market cap.
Room to restructure
Though exiting NASDAQ will limit InterCloud’s equity fundraising opportunity, the management believes that listing on OTC Market provides the company with ample room to restructure its balance sheet. InterCloud is seeking to reduce its indebtedness and the company recently announced that it successfully managed to remove debt of more than $14.1 million from its balance sheet.
In addition to eliminating debt, InterCloud Systems Inc (OTCMKTS: ICLD) is also focused on increasing internal efficiency and monetizing noncore assets as part of balance sheet restructuring measures. Divesting of noncore assets is expected to boost InterCloud’s liquidity standing and make it more flexible for the company to investment in more growth for the long-term.
$6 million worth of orders – InterCloud Systems Inc (OTCMKTS: ICLD)
Just before InterCloud Systems Inc (OTCMKTS:ICLD) decided to exit NASDAQ Market and provided an update about its new priorities, the company had announced more than $6 million in contracts for its network and maintenance services. Those orders came from new and existing customers, indicating how customers continue to show interest in the company’s solutions.