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mPhase Restructures Toxic Convertible Debt(June 06, 2012)
LITTLE FALLS, NJ -- (Marketwire) -- 06/06/12 -- mPhase Technologies, Inc. (OTCBB: XDSL) said negotiations with two creditors have led to a standstill agreement and restructuring of approximately $1,500,000.00 Dollars in Toxic Convertible Debentures.
The beneficial effect of restructuring of the Toxic Convertible Debentures will give the Company the control it needs to cease the automatic dilution of the issued and outstanding common stock.
The death spiral caused by these instruments has been eliminated to a large extent allowing the company breathing room to carry out its future plans.
The debt restructuring should allow the company the flexibility it needs to obtain funding for mPhase's revolutionary Smart Nano Battery Technology including the launch of its new product featuring advanced battery technology targeted for the automotive and marine industries.
The company stated: "The significant restructuring of this debt, especially the Toxic Convertible Notes, is the result of an aggressive effort on the part of management and the Board of Directors to improve mPhase's ability to meet its strategic goals of completing the commercialization of its technology and obtain funding in a more ordinary course."
About mPhase Technologies, Inc.
mPhase Technologies is introducing a revolutionary Smart Surface technology enabled by breakthroughs in nanotechnology, MEMS processing and microfluidics. Our Smart Surface technology has potential applications within drug delivery systems, lab-on-a-chip analytic systems, self-cleaning systems, liquid and chemical sensor systems, and filtration systems. mPhase has pioneered its first Smart Surface enabled product, the mPhase Smart NanoBattery. In addition to the Smart Surface technology, mPhase recently introduced its first product, the mPower Emergency Illuminator, an award-winning product designed by Porsche Design Studio and sold via the mPower website: http://www.mpowertech.com. More information about the company can be found at http://www.mPhaseTech.com.
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company's SEC Filing. mPhase assumes no obligation to update the information in this release.
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