The one thing that anyone can tell you who has spent any time on or watching Wall Street is uncertainty. We all watched in horror as the United States of America announced its intentions to invade Iraq. No one knew exactly when it really would happen, but America had given Saddam Hussein a deadline. Wall Street equity markets trended down every day up until that day and when midnight expired, the campaign of shock and awe began. Suffice it to say, the New York Stock Exchange Index was up over 250 points the very next day. Once it was all over and we knew what direction we were taking, whatever that meant, the market rallied.There was a similar situation with InterCloud Systems Inc (OTCMKTS:ICLD). It announced that, on May 24, 2016, it received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market ("NASDAQ") indicating that the Company is not in compliance with NASDAQ Listing Rule 5250(c)(1) for continued listing because the Company had not yet filed its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 (the "2016 10-Q").InterCloud share price was in a similar position to that of Wall Street’s Dow 30 Index, but the company announced on Wednesday, August 31, 2016, that rather than appeal the NASDAQ delisting determination, the Company would seek listing on the OTC. Now that has finally hit the tape, we should, hopefully, see the Company rebound.For those not familiar with InterCloud, the company is a leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. InterCloud's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to InterCloud rather than the capital expense model that has dominated in recent decades in IT infrastructure management.So far, everything is going well. On June 30, 2016, InterCloud secured purchase orders for software defined networking virtual network function validation services valued at over $4.0 million in annualized revenue. On July 15, 2016, the Company completed over $3.8 million of new professional services for a Tier 1 service provider. On August 4, 2016, the Company announced that it was awarded new contracts valued at over $6.0 Million. InterCloud has embarked on a plan to reduce costs as well as restructure and significantly reduce the debt on its balance sheet. In that regard, and as a first step, the Company announced that it has eliminated more than $14.1 million of debt from its balance sheet at the end of August 2016, as well as all derivative liabilities associated with that debt. Mark Munro, Chairman and CEO of InterCloud, stated:
“We have undertaken measures to reduce our operating expenditures, restructure our debt, and divest ourselves of non-core assets. Just this week we eliminated over $14.1 Million in debt from our balance sheet, as well as cash interest payments and derivative liabilities associated with that debt. In order to further these debt restructuring efforts, the Board of Directors determined that it would be more prudent to continue our public listing on the OTC-QX rather than on NASDAQ, in order to take advantage of increased flexibility in effectuating the aforementioned restructuring, as well as postpone the shareholder approved reverse-split. We believe that this is the start of our efforts to substantially de-leverage the Company and become cash flow positive as we grow our industry disruptive Software Defined Networking and Network Function Virtualization services and solutions.”
Just like the turmoil in the market before the Iraq invasion, it may be likely that this company has seen its lowest lows and see it only trade higher from here. We will be updating our subscribers as soon as we know more. For the latest updates on ICLD, sign up below!Disclosure: We have NO position in ICLD and have NOT been compensated for this article.
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