DecisionPoint Completes Exchange of $4.0 Million Sigma Senior Notes For $4.0 Million Convertible Preferred Stock
FOOTHILL RANCH, CA — (July 5, 2011) — DecisionPoint Systems, Inc., (PK: DPSI), a leading provider of Enterprise Mobility and RFID solutions, today announced that the company has completed the exchange of the $4.0 million of Senior Subordinated Secured Notes held by Sigma Opportunity Fund II, LLC, plus accrued interest, for a like amount of convertible preferred stock. Sigma received 1,286,667 preferred shares and 490,000 common shares. The preferred stock is convertible into common stock at $3.20 per common share.
“Exchanging the Sigma note for equity is a key building block toward achieving our long term strategic goals,” said Nicholas Toms, Chief Executive Officer of DecisionPoint. “With both the reverse merger and equity conversion now completed, our capital structure has been greatly improved and our equity base strengthened. Our balance sheet, with over $5.0 million of net shareholders’ equity, now supports our ambitions to achieve $100 million in revenue and sustained profitability in fiscal 2012.”
Maydan Rothblum, Managing Director of the Sigma Opportunity Fund II, LLC and DecisionPoint board member commented, “The exchanging of the Note facilitates Sigma’s ability to develop a long-term, strategic partnership with DecisionPoint and demonstrates our confidence in the company’s management team and in its growth potential. As preferred equity holders, we will work closely with management and the board of directors with the goal of creating greater levels of equity value and liquidity for all of the Company’s shareholders.”
A complete description of the transaction between the Company and Sigma is contained in the transaction documents, copies of which will be filed with the U.S. Securities and Exchange Commission in a Current Report on Form 8-K.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (PK: DPSI) delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies. For more information visit: http://www.decisionpt.com/news.php.
About Sigma Capital Partners
Sigma Capital Partners, LLC is a multi-strategy private equity firm that focuses on investing in small-to-mid size public companies operating primarily in the IT, Telecom and Technology industries. The Fund has an active, long-term, strategic investment approach. Sigma Capital works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, capital markets, operations, strategy and business development. For more information please visit: www.sigmacp.com
Forward Looking Statements
Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company’s actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company’s plans or expectation.
Nicholas R. Toms
Chief Executive Officer
T: 973-290-0100 ext 110
Investor Relations Contact:
Stephanie Prince/Jody Burfening
Lippert/Heilshorn & Associates