HERNDON, Va., May 05, 2022 (GLOBE NEWSWIRE) — Sysorex (OTCQB: SYSX), a preeminent U.S.-based Ethereum mining and know-how firm, is offering a enterprise replace to its shareholders.
“At the outset, I would like to thank our valued shareholders, many of whom like Bigger Capital Fund, LP and District 2 Capital Fund LP, which issued an open letter to shareholders earlier this week, recognize the significant “untapped potential” in Sysorex,” said Wayne Wasserberg, CEO of Sysorex. “While markets have been under severe pressure over the last six or more months given economic news and world events, and this time has seen a commensurate decline in the value of crypto assets, Sysorex firmly believes in the future of the Ethereum Blockchain and the viability of our Sysorex Government Services business. Our anticipated transaction with Ostendo Technologies, Inc., slated to close later this month, is just one example of a number of strategic steps we are undertaking to potentially create substantial value during this market downturn. If our common stock was to remain at these levels following the Ostendo transaction, we would be trading at far less than one-half of book value, which is likely one of the reasons that funds like Bigger Capital and District 2 have identified Sysorex as a deep value opportunity.”
Mr. Wasserberg continued, “From a business operational standpoint, Sysorex´s footing remains strong as the Company´s Sysorex Government Services division continues to execute and has seen revenue growth the last several months, which has positively impacted our bottom line. We have historically been able to supplement our balance sheet by mining more than $800,000 a month of Ethereum (ETH) on average. Although the planned sale to Ostendo of our wholly-owned data center in Upstate New York and approximately 75% of our Ethereum mining capacity will reduce our monthly gross revenue by about $600,000 on average, the addition of approximately $70,000,000 in Ostendo securities to our balance sheet is expected to place our Company in a large net-positive shareholders’ equity position. In turn, this supports our planned efforts to work with several New York City-based investment banks to list Sysorex on a national securities exchange by year-end. It is our strong belief that we are not at the end of the road by any means; in fact, we are nearly ready to unlock our Company´s significant untapped potential.”
Ethereum (ETH) Mining
The Company continues to efficiently mine Ethereum and from October 2021 via April 2022, on common, the Company has mined roughly 236 ETH monthly. Historically, the Company´s ETH mining has yielded a median month-to-month gross of income of $816,951 at a median worth of $3,461.66 per ETH for a similar interval. The Company frequently seeks to optimize the worth of its Ethereum holdings and whereas throughout this era the Company has been promoting a share of its mined ETH to advance different company initiatives, the Company retains a considerable ETH place on its stability sheet.
Recent Debenture Conversions
During the previous a number of months, the Company acquired numerous conversion notices associated to its excellent convertible debentures issued in the summertime of 2021. Approximately $3,600,000 of conversions have been processed up to now. The remaining stability of excellent debentures earlier than curiosity is roughly $14,500,000. Whereas the amount of the current conversion requests was substantial and had the impact of exacerbating the market-driven decline within the Company´s share worth, the Company has depleted considerably all of its licensed shares. The foregoing resulted within the Company’s lack of ability to course of roughly $1,400,000 of pending conversions, which conversions might be honored at a later date as soon as the Company has elevated its licensed shares.
As of April 14, 2022, the Company has 494,443,611 shares excellent. The Company plans to supply a further company replace throughout the subsequent 15 enterprise days, which is able to embody particulars associated to the deliberate improve of its licensed shares in addition to sure different company actions. During this similar timeframe, the Company intends to handle the stability of the holders of the Company´s convertible debentures with the intent of figuring out whether or not such holders can be inclined to exit their holdings at a reduction to present worth or obtain a negotiated participation sooner or later worth of the Company. Whereas the Company has nearly no accessible shares at the moment and counsel has suggested that the method of accelerating the licensed shares can take roughly 90 days, the debentures mustn’t have a cloth impression on the Company´s share worth through the subsequent a number of months. Notwithstanding, the Company will search to realize a stand-still with its debenture holders because it pursues a nationwide inventory trade itemizing.
Ostendo Asset Sale
Sysorex continues to work in the direction of closing the transaction with Ostendo outlined in a Heads of Terms dated March 24, 2022 (filed on Form 8-Ok), with an anticipated time limit of May 24, 2022. The Company is principally promoting its Upstate New York information heart and roughly 75% of its GPU-based capability at present being utilized for Ethereum mining in trade for almost $70,000,000 in e-book worth fairness. The addition of this fairness worth ought to considerably improve the Company´s shareholders’ fairness and the Company sees future alternatives to collaborate with Ostendo because it undertakes industrial launch of its proprietary gentle subject, quantum photonic semiconductor-chip-based augmented actuality {hardware}, enriching the Metaverse.
In anticipation of the completion of the Ostendo transaction, as said, the Company is in energetic discussions with a number of New York City-based funding banks to help with the Company´s anticipated up-listing to a nationwide inventory trade. The Company will embody a list course of replace in its subsequent company communication. The Company can be exploring mechanisms associated to the Ostendo securities or the stability of its GPU belongings to drive extra worth for Sysorex shareholders post-closing.
Sysorex Government Services Growth
Sysorex Government Services, Inc. (SGS), the Company’s legacy enterprise, continues to develop. Year-to-date, the Company has invoiced almost $9,000,000, which has allowed Sysorex to appreciate greater than $750,000 in revenue. SGS continues to leverage present contracts to proceed its conventional authorities companies choices and SGS administration has a bullish outlook on the Blockchain house.
“The adaptation of decentralized ledger technology along with eventual regulatory guidance suggests that the largest potential customer for blockchain technology will be the federal government,” stated Zaman Khan, President of SGS. “Government adoption within several of its largest departments is already impacting initiatives through the use of Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) to improve supply chain integrity, security, transparency, and logistics. SGS will seek to unlock value from our existing government contracts and pursue additional opportunities given the expertise we have gained through Sysorex´s blockchain-related experience.”
“SGS has three best-in-class federal contracts that are considered government-wide acquisition contracts (GWACs),” continued Mr. Khan. “These are ideal contract vehicles to ensure that blockchain solutions are accessible to all government agencies and branches. GWACs are unique in that they are managed by a federal agency however the contracts can be utilized by all three branches of the government, any federal agency, the Department of Defense, and the intelligence community. The contracts, GSA FSS IT-70, NASA SEWP IV, and NIH CIO-CS, can also be used in some instances with state and local governments and systems integrators.”
ABOUT SYSOREX, INC.
Sysorex, Inc. (Company) is an information heart proprietor and operator and preeminent U.S.-based, publicly traded Ethereum mining and know-how firm. The Company at present owns and operates roughly 11,000 NVIDIA GPUs producing roughly 500 Gigahash of computing energy, which GPUs embody 1000’s of Cryptocurrency Mining Processors (CMPs). These GPUs are at present on-line and securing the Ethereum Blockchain and producing ETH across the clock with business main effectivity. In addition to the mining of ETH, the Company operates its wholly owned subsidiary, Sysorex Government Services, Inc. (SGS), a enterprise that gives info know-how merchandise, options and companies to federal, state, and native authorities, together with system integrators. The Company, along side SGS, is advancing methods to leverage decentralized finance (De-Fi) and Non-Fungible Token (NFT) alternatives powered by the Ethereum Blockchain.
Safe Harbor Statement
All statements on this launch that aren’t primarily based on historic truth are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Sysorex, Inc. and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Sysorex’s results of operations, Sysorex’s ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Sysorex’s technology. Other factors that are detailed in Sysorex’s periodic and current reports available for review at sec.gov. Furthermore, Sysorex operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Sysorex disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.
Investor Relations
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: SYSX@crescendo-ir.com
This press launch doesn’t represent a proposal to promote or the solicitation of a proposal to purchase debentures, warrants, or every other securities of the Company, nor there shall be any provide, solicitation, or sale of securities of the Company in any jurisdiction by which, or to any individual to whom, such a proposal, solicitation or sale is illegal.
