C-Bond Systems Announces Full Redemption of Series A Convertible Preferred Stock and Partial Prepayment of Convertible Debt
Company Eliminates Multiple Discounted Convertible Instruments from Capital Structure, Reducing Potential Dilution
HOUSTON, Aug. 26, 2020 (GLOBE NEWSWIRE) -- C-Bond Systems, Inc. (the “Company” or “C-Bond”) (OTC: CBNT), a nanotechnology solutions company, announced today that it has redeemed in full its Series A Convertible Preferred Stock, as well as a portion of its convertible debt outstanding, using $270,000 in net proceeds from an August 2020 equity financing.
Prior to the redemption of the Company’s Series A Convertible Preferred Stock, there were 103,200 shares outstanding, with a stated value of $1,000 per share. The Company also prepaid two convertible promissory notes in the amount of $57,750 each, plus interest. Prior to redemption, both the Series A Convertible Preferred Stock and the convertible debt, held by third-party lenders, were convertible into the Company’s common stock at a discount to the market price.
“We are pleased to have simplified our capital structure through the elimination of these discounted convertible instruments, better positioning us to create value for our shareholders,” said Scott R. Silverman, Chairman and Chief Executive Officer of C-Bond Systems. “As we continue to execute upon our business plan and grow revenues across both our Transportation Solutions and Safety Solutions Groups, it is our goal to reach cash flow breakeven – eliminating the need to rely on outside funding.
“Concurrent with these efforts, we are pursuing new avenues by which we can retire our remaining convertible notes. I look forward to providing further updates on the capital structure front as appropriate,” concluded Silverman.
C-Bond Systems, Inc. (OTC: CBNT) is a Houston-based advanced nanotechnology company and marketer of the patented C-Bond technology, developed in conjunction with Rice University and independently proven to significantly strengthen glass in key automotive and structural applications. The Company’s Transportation Solutions Group sells C-Bond NanoShield®, a liquid solution applied directly to automotive windshields, sold through distributors. The Company’s Safety Solutions Group sells ballistic-resistant glass solutions and FN NANO Coating directly to private enterprises, schools, hospitals and government agencies. For more information, please visit our website: www.cbondsystems.com, Facebook: https://www.facebook.com/cbondsys/ and Twitter: https://twitter.com/CBond_Systems.
Statements in this press release about our future expectations, including the likelihood that eliminating multiple discounted convertible instruments from our capital structure will reduce potential dilution; the likelihood that we are better positioned to create value for our shareholders; the likelihood that as we continue to execute upon our business plan and grow revenues across both our Transportation Solutions and Safety Solutions Groups, it is our goal to reach cash flow breakeven – eliminating the need to rely on outside funding; the likelihood that we are pursuing new avenues by which we can retire our remaining convertible notes; constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. These risks and uncertainties include, without limitation, C-Bond’s ability to raise capital; the Company’s ability to successfully commercialize its products; the effect of the COVID-19 global pandemic on the Company’s business and ability to operate; as well as other risks. Additional information about these and other factors may be described in the Company’s filings with the Securities and Exchange Commission (“SEC”) including its Form 10-K filed on March 25, 2020, its Forms 10-Q filed on August 14, 2020, May 15, 2020, and November 14, 2019, and in future filings with the SEC. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
Investor Contacts: Lucas A. Zimmerman Senior Vice President MZ Group - MZ North America 949-259-4987 CBNT@mzgroup.us www.mzgroup.us Allison Tomek VP, Corporate Communications C-Bond Systems, Inc. firstname.lastname@example.org 832-649-5658
Released August 26, 2020