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High Wire Networks, Inc. (OTC:HWNI) announced several corporate developments, including the completion of significant asset sales and changes in its executive leadership, according to a press release statement based on its recent SEC filing.
On August 13, the company and its subsidiaries finalized the sale of substantially all operating assets from its Managed Security Services and Voice Network divisions to Tego Cyber Inc. (OTCQB:TGCB) subsidiaries. OW Cyber LLC, a Tego Cyber subsidiary, acquired most of High Wire’s managed cybersecurity business assets for 750,000 shares of Tego Cyber’s Series B Preferred Stock, with a stated value of $3 million, and assumed certain liabilities. Secure Voice LLC, another Tego Cyber subsidiary, acquired most assets of Secure Voice Corp., High Wire’s wholesale voice network subsidiary, for 250,000 shares of Tego Cyber’s Series B Preferred Stock, valued at $1 million, and also assumed certain liabilities.
In connection with these transactions, Helena Global Investment Opportunities 1 Ltd., High Wire’s senior secured lender, released its security interests in the conveyed assets in exchange for $300,000 stated value of Tego Cyber’s Series A Preferred Stock. Helena retained a security interest in High Wire’s remaining assets until the outstanding balance of $150,000 is repaid.
The company also reported leadership changes. On July 9, Stephen LaMarche resigned from the Board of Directors. Curtis E. Smith resigned as Chief Financial Officer on July 11. Peter Kruse resigned from the Board, effective July 9. The company stated that none of the resignations involved disputes or disagreements with management or company practices.
Additionally, on September 25, High Wire Networks entered into a non-binding letter of intent with Thoth Aerospace Inc. and its sole shareholder. The letter outlines a potential acquisition of Elevation Aerospace Inc. by High Wire, to be structured as an equity exchange. The agreement includes an exclusive negotiation period of 30 days, provisions for the continuation of Thoth Aerospace’s management and employees, and a 1% break-up fee in case of breach. The transaction remains subject to due diligence, board approval, execution of a definitive agreement, and customary closing conditions.
All information is based on the company’s statement in its recent SEC filing.
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