Transportation and Logistics Systems, Inc. Closes $6,150,000 Financing
Provides SalSon Logistics, Inc. Acquisition Update
JUPITER, FL / ACCESSWIRE / January 3, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), (“TLSS” or the “Company”), a growing logistics service provider, today announced that on December 31, 2021, it closed an equity financing which provided gross proceeds of $6,150,000.
According to CEO John Mercadante, “The Company is gearing up for 2022 and believes that this financing provides the Company with adequate working capital for the year and with funds that can be deployed, in part, in connection with acquisition opportunities.”
Under the terms of a Securities Purchase Agreement relating to the new financing, the Company issued to certain accredited investors in a private placement an aggregate of 615,000 shares of Series G Convertible Preferred Stock of the Company, par value $0.0001 per share (“Series G Shares”) and warrants to purchase 615,000,000 shares of common stock of the Company, par value $0.0001 per share (“Common Stock”), at an exercise price of $0.01 per share (“Warrants”). The conversion price of the Series G Shares is $0.01. The shares of Common Stock issuable upon conversion of the Series G Shares, if the Series G Shares were converted on December 31, 2021, would be approximately 689,655,337 shares.
With regard to the proposed acquisition of SalSon Logistics, Inc. (“SalSon”), the Stock Purchase Agreement pertaining to that transaction expired in accordance with its previously disclosed terms on or about September 15, 2021. Notwithstanding the foregoing, TLSS and SalSon are jointly exploring alternative financing options backed by the significant value of SalSon’s assets, even without the benefit of a definitive agreement in place. However, the Company cannot give any assurance that it will, in fact, be able to enter into a new agreement to acquire SalSon or, if it does, that the Company would be able to obtain the significant amount of financing that would be required to consummate an acquisition of SalSon.
Even as it continues to devote time and effort to a possible SalSon acquisition, the Company is also in discussion with several other companies concerning potential acquisition opportunities and given the consummation of the Series G financing, the Company believes that such financing has put the Company in a much stronger financial position than before to execute on strategic acquisition opportunities in 2022.
About Transportation and Logistics Systems, Inc.
TLSS, through its wholly owned operating subsidiaries, Cougar Express, Inc and Shyp FX, Inc., operates as a full-service logistics and transportation company.
For more information, visit the Company’s website, www.tlss-inc.com.
Forward Looking Statements
Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “intend,” “plan,” “goal,” “seek,” “strategy,” “future,” “likely,” “believes,” “estimates,” “projects,” “forecasts,” “predicts,” “potential,” or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations, and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers’ cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry’s and customers’ evolving demands; our history of losses, deficiency in working capital and a stockholders’ deficit and our ability to achieve sustained profitability; material weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our substantial indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.
These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.
SOURCE: Transportation & Logistics Systems
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