NetworkNewsBreaks – ISW Holdings Inc. (ISWH) Ann

NetworkNewsBreaks – ISW Holdings Inc. (ISWH) Announces Agreement with Noteholders to Reduce Debt

ISW Holdings (OTC: ISWH), a global brand management holdings company, has reached an agreement with its largest noteholders to exchange approximately 50% of its current convertible debt for restricted preferred equity. The agreement eliminates a significant portion of the dilution potential from convertible debentures currently carried by ISW Holdings. The agreement calls for ISWH and its largest noteholder to exchange principal and interest with an aggregate value of $602K for restricted Preferred B equity. The move reduces total debt for ISWH and curtails dilution potential over the coming months and years. The agreement forms the basic template ISW Holdings intends to use in future financing rounds. “The Preferred B Shares will be restricted for a period of one year,” said ISWH president and chairman Alonzo Pierce in the press release. “After one year, the Preferred B Shares can only be converted at a maximum 12.5% per quarter of the original common share issuance (a total of 4.5 million common shares). So basically, no more than 562,500 common shares will hit the market in any given quarter. . . . This move really shows the confidence of the debt holders that a strong upward trajectory for the company and its stock price is imminent.”

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