For the period from December 1, 2019 through April 30, 2020, Iota Communications, Inc. (OTCQB:IOTC), a wireless communications and software technology company, raised approximately $7.0 million from the private placement of common stock and borrowings from accredited investors. The proceeds from these offerings were used for working capital, paydown of debt, and general corporate purposes to aid in servicing the public and first responders during the pandemic.
Yesterday the company announced an update to operations pertaining to the COVID-19 pandemic and in recognition of PA Governor Tom Wolf and Secretary of Health Dr. Rachel Levine’s statewide stay-at-home orders. Iota Communications initiated a range of policies consistent with government guidelines as the company’s primary priority is to protect employees and maintain continuity with its clients.
“While we remain focused on our core mission of building a best-of-breed low power wide area network (LPWAN) to enable a vast assortment of IoT applications,” stated Terrence DeFranco, President & CEO of Iota Communications, “we believe there are many new use cases emerging as businesses permanently alter their operations, particularly around employee health, asset management and sustainability. For example, we are seeing increased interest in our remote asset management product using indoor air quality sensors. This application uses sensors to gather temperature, humidity, CO2, volatile organic compounds (VOCs) and particulate matter to maintain healthy air quality levels and reduce energy consumption. The IoT will play a larger role in a new world and we believe IotaComm can benefit.”
“We set out at the beginning of this fiscal year to achieve the goals of reducing debt, streamlining and improving operations and positioning for network technology commercialization in early-FY2021 and those goals are still on track as we approach fiscal year end,” DeFranco said. “We are also focused on building upon these accomplishments to eventually uplist our common stock to the NASDAQ market.”
“The COVID-19 crisis has impacted our fundraising efforts, but through a combination of accessing capital from other sources,” DeFranco said, “accelerating previously planned cost-reduction initiatives and working with our partners and vendors we believe we will be able to continue operations until such time as we can revisit the capital markets. While challenges still remain in the current environment, I am proud of our team’s resilience and the outstanding job they are doing under these circumstances. We are also in communication with local organizations within the community to make ourselves available to help in any way that we can.”