DPW Holdings’ Digital Power Lending Enters Agreement to Form Joint Venture with QPAGOS
Launches Self-Service Kiosk Electronic Payment and Financial Services Network
NEWPORT BEACH, CA, June 15, 2018 (GLOBE NEWSWIRE) – DPW Holdings, Inc. (NYSE American: DPW) (“DPW” or the “Company“), a diversified holding company, announced today that Digital Power Lending, LLC (“DPL”), its wholly-owned subsidiary, has entered into an agreement to form a joint venture to be called Innovative e-Payment Solutions with QPAGOS (OTCQB: QPAG),(“QPAGOS”), a provider of consumer payment and financial services in Mexico, to launch a network of 1,000 self-service kiosks starting in California over the next 12 months. It is the joint venture’s intent that the self-service kiosks will feature consumer payments with an ability to enter into transactions with over 10,000 vendors, utilities and service providers actively accepting payments (domestic and international) as well as mobile top up service, money transfers, cryptocurrency purchases and payments and micro lending transactions. Currently, there are less than 1,800 active kiosks to date throughout the United States that provide similar services including the ability to purchase cryptocurrency.
QPAGOS has established a solid presence in the Mexican market through 700 kiosks deployed with over 140 payment services integrated. In 2017, QPAGOS processed over $8,000,000 in transactions including utility and entertainment service payments as well as transportation, national lottery, cryptocurrency and other transactions. QPAGOS and DPL intend to leverage QPAGOS’ experience and expertise to develop a network of over 10,000 kiosks throughout the United States by 2023.
William “Bill” Corbett, President, CEO and Manager of DPL, stated, “We are thrilled to be able to partner with QPAGOS in the initial launch of one of the most sophisticated kiosks in the world. The ability of Digital Power Lending to participate in both the selling of our cryptocurrency and the money remittance business with Mexico is a very compelling opportunity for DPW Holdings and its shareholders. We look forward to building this business in Southern California with a proven management and technology team at QPAGOS.”
The parties plan to enter into an operating agreement of Innovative e-Payment Solutions, LLC and related credit facility agreement and supply agreement, on July 1, 2018. Under the agreement to form the proposed joint venture, DPL plans to contribute cash and a promissory note in the aggregate amount of $2.5 million for 51% interest. In addition, DPL plans to enter into a $2.5 million credit facility to assist in the financing of the purchase of the kiosks by the joint venture. Finally, QPAGOS plans to enter into a supply agreement with the joint venture. Unless otherwise agreed to by the parties, the agreement to establish a joint venture will terminate if the parties do not enter into the operating agreement, credit facility agreement and supply agreement by July 1, 2018 unless extended by the parties.
ABOUT DPW HOLDINGS, INC.
Headquartered in Newport Beach, CA, DPW Holdings, Inc., (www.DPWHoldings.com), is a diversified holding company with a growth strategy of acquiring undervalued assets, disruptive technologies, sustainable solutions, and exciting ventures for incubation and development to their full potential for long-term growth and investor returns.
DPW, through its wholly-owned subsidiary, Coolisys Technologies, Inc., is dedicated to providing world-class technology-based solutions for critical applications and lifesaving services, in which innovation is the main driver. Coolisys serves the defense, aerospace, naval, homeland security, medical, telecom, datacom, and industrial markets. Its growth strategy targets core markets that are characterized by “high barriers to entry” and that require specialized products and services that are not likely to be commoditized. Through its portfolio companies, Coolisys develops and manufactures cutting-edge switching power products and power solutions utilizing its customized digital power management and resonant topology to achieve the highest efficiency and highest density power converters and inverters; specialized complex airborne high-frequency, radio frequency (RF), and microwave detector-log video amplifiers (DLVA); very high-frequency filters; and naval power conversion and distribution equipment. Coolisys provides its technology and services through its three primary groups: the Power Solutions Group (PSG); the Defense and Aerospace Solutions Group (DSG); and the Advanced Service Industries (ASI) Group. Coolisys manages five divisions, including Digital Power Corporation, www.DigiPwr.com, a leading provider of power electronics technology based in Northern California; Digital Power Limited dba Gresham Power Ltd., www.GreshamPower.com, a designer and manufacturer of power distribution systems primarily for Naval use based in Salisbury, UK; Microphase Corporation, www.MicroPhase.com , a designer and manufacturer of microwave electronics technology based in Shelton, CT; Power-Plus Technical Distributors, www.Power-Plus.com, a value-added distributor based in Sonora, CA; and Enertec Systems, www.Enertec.co.il, a developer and manufacturer of specialized advanced electronic systems for the defense and aerospace sectors based in Karmiel, Israel.
Digital Power Lending, LLC, www.DigitalPowerLending.com, a wholly owned subsidiary of the Company, is based in Fremont, CA, and is a California private lending company operating under Financial Lender’s License ##60DBO-77905 dedicated to strategically providing capital to small and middle size businesses for an equity interest in addition to loan fees and interest. Super Crypto Mining, Inc. www.SuperCryptoMining.com is a wholly-owned subsidiary of the Company, is based in Fremont CA that leverages its engineering expertise and existing locations to create crypto currency mining facilities across the globe. Super Crypto Mining, Inc. operates the branded divisions, Super Crypto Power, www.SuperCryptoPower.com and Super Miner, www.SuperMiner.com. Excelo, LLC, www.Excelo.com, a wholly-owned subsidiary of the Company, is a national search firm specializing in fulfilling strategic executive, professional and hi-tech placements for businesses delivering world-class services. DPW Holdings, Inc.’s headquarters is located at 201 Shipyard Way, Suite E, CA 92663; www.DPWHoldings.com. For Investor inquiries: IR@DPWHoldings.com or 1-888-753-2235. News Source: Digital Power Lending, LLC
The foregoing release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the acquisition and the ability to consummate the acquisition. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Such forward-looking statements include, but are limited to that DPL and QPAGOS will enter into a joint venture agreement and related credit facility and supply agreement, that the joint venture will be able to launch a network of 1,000 kiosks in 12 months, that the kiosks will be able to provide and process the anticipated services and transactions, and that the joint venture will able to develop a network of over 10,000 kiosks in the United States by 2023. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.DPWHoldings.com.