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Following the announcement of 100,000 ordinary shares at $43.74 per share, a notable premium to its previous closing price, to settle $4.37 million of outstanding debt, SuperCom (SPCB, Financials) shares rose 27.11% to $16.83 in mid-morning trading on Thursday.
The issuing is a part of an amendment intended to improve financial flexibility with a national investment management company serving as the senior lender. With interest accumulating and paid alongside the principle at maturity, the amendment extends the loan maturity date to Dec. 31, 2028, and removes monthly cash interest and amortization payments.
SuperCom said these adjustments would boost free cash flow to support its expansion plans over the next four years. Over the last year, the corporation has reduced its overall debt by thirty-two percent.
President and CEO Ordan Trabelsi said the modification demonstrates the confidence developed with the lender and improves the company's capacity to pursue worldwide growth and high-return prospects.
Since mid-2024 SuperCom has entered six additional U.S. states and secured more than 15 national projects in Europe.
This article first appeared on GuruFocus.