KonaTel Inc (KTEL) has released an update to notify the public and investors about its financial commitment initiation.
KonaTel and IM Telecom have entered into an agreement to sell KonaTel’s entire membership interest in IM Telecom to Excess Telecom, Inc. for an initial purchase price of $10 million, with the transaction set to complete in two closings. The initial closing involves the sale of a 49% interest for the full initial purchase price, adjusted for a $1 million deposit, closing liabilities, a holdback amount, and a finder’s fee. An additional $5 million earnout is contingent on the renewal of the ACP Connectivity Program by Congress, and the final closing will transfer the remaining 51% interest for $100. The agreement also incorporates provisions for handling certain liabilities and securing release of security interests from credit facilities.
For further insights into KTEL financials, check out TipRanks’ Financials page.
For a comprehensive understanding of the announcement, you can read the full document here.
