COMSovereign Holding Corp Files for Preferred Stock Offering

COMSovereign Holding Corporation (COMS) has announced they will be selling a perpetual preferred issue.

The coupon will 9.25% and the permanent ticker on NASDAQ will be COMSP.

The issue will pay monthly dividends which will be cumulative and qualified (assuming they have income–if not they will be return of capital).

I know nothing at all about this company so I have snipped the company description out of the prospectus.

Our Company

We are a provider of technologically-advanced telecom solutions to network operators, mobile device carriers, governmental units and other enterprises worldwide. We have assembled a portfolio of communications, power and portable infrastructure technologies, capabilities and products that enable the upgrading of latent 3G networks to 4G and 4G-LTE networks and will facilitate the rapid roll out of the 5G and “next-Generation” (“nG”) networks of the future. We focus on novel capabilities, including signal modulations, antennae, software, hardware and firmware technologies that enable increasingly efficient data transmission across the electromagnetic spectrum. Our product solutions are complemented by a broad array of services, including technical support, systems design and integration, and sophisticated research and development programs. While we compete globally on the basis of our innovative technology, the breadth of our product offerings, our high-quality cost-effective customer solutions, and the scale of our global customer base and distribution, our primary focus is on the North American telecom infrastructure and service market. We believe we are in a unique position to rapidly increase our near-term domestic sales as we are among the few U.S. based providers of telecommunications equipment and services.

The preliminary prospectus can be read here.

Dufus mentioned this new issue in the Common Stock Chat Area.

6 thoughts on “COMSovereign Holding Corp Files for Preferred Stock Offering”

  1. I took a few minutes and visited their website to see who they are. This company is really just a holding company made up of multiple subsidiaries that make hardware for the 4G and 5G cell phone systems. The CEO and the rest of the executive team have all been involved in the industry for a long time. They do have some pretty impressive resumes on the website as you would expect. They would not put anything bad there obviously. The CEO was heavily involved with one of the subsidiary companies. What I think they are attempting to do is to supply the industry with small cell 5G tower systems technology and hardware. 5G transmission from the traditional cell phone towers doesn’t go far at all, maybe a 1/4 mile to a 1/2 mile maximum. 5G deployment is going to require a TON of small cell 5G towers to work. They are going to be everywheres on buildings, utility poles, street lights, etc. The industry is still trying to work all the details out on small cell towers. Lord knows how this will eventually turn out. We will literally bristle with 5G towers to make 5G work. Back to this company……. I think they are trying to survive until they can land some plum deals with the phone companies for their hardware and services. My guess is the proceeds from this preferred stock will be used to survive until that happens. My opinion this is one super risky preferred for income seekers with little / moderate risk of losing your capital like most of us. These guys either will be gone in a couple of years like Mr. Conservative stated or rolling in contracts / money. Step up to the roulette wheels folks and place your bets if you care! I don’t! I have my full allotment of ones like this already! If I was going to gamble maybe their common stock. It will either be worthless in a couple of years or worth many times what it is now.

  2. They did a 1:3 reverse stock split on the common in January and in spite of that are rapidly approaching the delisting price of $1/share again.
    Having worked many years in telecom, this company is too scary for me

    1. I still work in telecom and I have never heard of them. They either work with foreign companies or only radio based solutions. Nothing a typical medium sized isp/telephone provider would care about.

  3. I don’t have time to dive into this one. Buy a few hundred to flip, for better or worse. Unless a slew of people write negative reviews.

    1. The books are pretty bad. I wonder if you wind the clock back… would this 9% be a 14% ? I would take a bet in < 2 yrs the preferred is suspended or they don't exist.

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