SuperCom Offers Shares at $43.74 to Clear Debt and Enhance Cash Flow for Future Growth

SuperCom Enhances Financial Flexibility with Strategic Share Issuance

SuperCom (NASDAQ: SPCB) has recently made a significant move in financial strategy by issuing 100,000 ordinary shares priced at $43.74 each. This decision, announced on January 23, 2025, marks a remarkable premium over the company’s last closing price and is intended to address $4.37 million of outstanding debt. In an exclusive partnership with a senior lender, a prominent national investment management firm, this strategy not only aims to reduce debt but also enhances the company's overall financial flexibility.

This move signifies a shift towards better cash flow management for SuperCom, which specializes in secure solutions for sectors including e-Government, IoT, and Cybersecurity. The company aims to utilize the expected increase in cash flow to bolster its strategic growth initiatives over the next four years. Moreover, this debt paydown results in a notable 32% reduction in SuperCom's total outstanding debt within just one year.

Ordan Trabelsi, President and CEO of SuperCom, expressed satisfaction with the newly signed amendment with the lender, emphasizing the strong relationship built over the years. The adjustment not only allows the issuance of shares at the mentioned premium but also grants essential financial breathing room for pursuing strategic plans and global expansion.

In conjunction with the debt settlement, SuperCom has secured an extension for the maturity date of this debt until December 31, 2028. Notably, this new arrangement means that monthly cash interest payments and amortization payments to the lender will no longer be required. Instead, interest will accumulate and be paid along with the principal at its maturity. This expected means of restructuring adds significant long-term flexibility to SuperCom's financing capabilities, effectively paving the way for future investments.

The opportunities for growth are particularly pronounced following SuperCom’s recent success in winning over 15 national projects across Europe and a rapid entry into the U.S. market. Since the summer of 2024, the company has launched operations in six new states, paving the way for expanded opportunities with potentially high returns on investment. With the combination of enhanced cash flows and favorable financing terms, SuperCom is well-prepared to pursue its long-term growth objectives and deliver substantial value for its stakeholders.

SuperCom, a company established in 1988, has built a strong reputation in providing both traditional and digital identity solutions tailored for governments and private organizations globally. Their innovative e-Government platforms and comprehensive solutions, which cover traditional and biometric enrollment, have inspired governments to design robust digital identity systems for their citizens.

To learn more about SuperCom, visit their website at www.supercom.com.

This press release further includes forward-looking statements, which highlight expected business trends and potential risks that could impact future performance. As highlighted in previous filings, potential uncertainties could lead to actual outcomes differing from these statements. The board and leadership team at SuperCom remain committed to transparency and are dedicated to updating investors with pertinent information as required by law.

For further information or inquiries, feel free to reach out via SuperCom's investor relations email.