Gawk Inc (OTCMKTS:GAWK) shares were flat on Tuesday at $0.00020 and unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.01. The company has a market cap of $256K at 1.28 billion shares outstanding.
Gawk Inc is a company that provides a range of cloud communications, cloud connectivity, cloud computing and managed cloud-based applications solutions to small, medium and large businesses. The company also offers domestic and international voice services to communications carriers around the world.
Its cloud services platforms enable the integration of solutions in the cloud by connecting employees, partners, customers and vendors. It offers a range of data center and cloud-based services, including fault tolerant, high availability cloud servers, which encompasses platform as a service (PaaS), infrastructure as a service (IaaS) and across the world content delivery network (CDN). Its managed network services converge voice and data applications, structured cabling, wireless, security services and include Internet access through Ethernet or fiber at speeds ranging from 10 megabits per second (Mbps) to 10 gigabits per second (Gbps). Its data center solutions include cloud services.
In a press release, Gawk Inc announced that it has signed an equity purchase agreement with GHS Investments, an institutional investor. Under this agreement, the company has the right, but not the obligation to sell, up to $7 million of its common stock to GHS, in an amount that it determines. The capital will create significant growth capital for GAWK, enabling the execution of its business plan, on favorable terms.
We intend to use this new infusion of cash from GHS to implement our business plan of acquiring strategic businesses within the cloud communications sector,” said Scott Kettle, Gawk Inc CEO. “This move is important because it has resulted in a significant improvement of the terms under which we can access capital on an as needed and when needed basis.”
In particular, Gawk Inc will use this capital for acquisition since it is already operating cash flow positive and will focus on using any new capital for strategic growth. The company has also participated in the recently announced restructuring of the convertible securities and has achieved many of the goals that it has set out for 2017.
In a previous announcement, Gawk Inc had a call with shareholders to discuss Q3 2016 results and 2017 value growth initiatives. Management discussed its year-over-year revenue growth for the quarter of over 300% and a similar gross profit increase. Among the initiatives mentioned are to restructure senior secured debt to preserve cash and allow further reinvestment in products and service development, restructure of short term convertible debt to further reduce unnecessary dilution, continue growth through acquisition, seek traditional less dilutive financing to sustainably fuel growth, increase gross margin through improved economies of scale, and continue innovation and development of disruptive technologies and services that will drive revenue growth. It also plans to expand marketing to underserved business segments and increase investor awareness to realize greater market value.
We’re finally hitting our stride here with accelerating top line growth and achievement of operating cash flow positive status,” commented Kettle. “Shareholders can expect regular updates about out progress on these initiatives and on milestones as we hit them.”
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