DPW stock is moving higher on December 11, 2019, after the company announced a day earlier it was rebranding its defense business.
On December 10, 2019, DPW Holdings, Inc. (NYSE American: DPW), a diversified holding company, announced a rebrand and plans to seek access to public markets for its global defense business under the name Gresham Worldwide, Inc. (“Gresham Worldwide”).
Gresham Worldwide, formerly known as DPW Technology Group, will combine and focus three established companies into a provider of high-quality, ultra-reliable bespoke technology solutions for mission critical applications in the defense, medical and telecommunications verticals. The three component companies under the leadership of CEO, Jonathan Read, are Microphase Corporation, Enertec Systems 2001 Ltd. and Gresham Power Electronics Ltd.; each has over 30 years experience as global defense contractors. Gresham Worldwide operates with a global footprint with headquarters in Phoenix, Arizona, an office in Washington D.C. and design and operations centers in Shelton, Connecticut, Salisbury, U.K., and Karmiel, Israel. Gresham Worldwide plans to retain individual sub-brands in the near term.
Gresham Worldwide has significant expansion opportunities and backlog with imminent orders of approximately $41 million and is looking to raise significant funds to execute and fulfill these orders and complete its growth plans. To this end, Gresham Worldwide has engaged the investment banking firm ThinkEquity for its plans to seek access to public markets. DPW plans to retain an ownership position in the defense business and may dividend shares of Gresham Worldwide to DPW shareholders.
“We are very excited about the prospects for Gresham Worldwide,” said Jonathan Read, Gresham Worldwide’s CEO. “Our planned capital raise is expected to generate significant revenue from fulfillment of orders from long life cycle platform programs with ‘blue chip’ customers in defense, aerospace and commercial sectors across the globe, and which we anticipate, will afford us the ability to achieve strong growth. Moreover, Gresham Worldwide provides a solid platform to capitalize on growth opportunities and additional acquisitions of quality small and mid-size defense firms.”
DPW’s CEO and Chairman, Milton “Todd” Ault, III said, “As a holding company, our business strategy is designed to increase shareholder value. Accordingly, we are focused on managing and financially supporting our existing subsidiaries with the goal of maximizing the value returned to shareholders. As we have previously announced, we will consider initiatives including, public offerings or the sale of individual partner companies, as well as other opportunities to maximize shareholder value. We believe Gresham Worldwide’s plans to raise capital will result in significant revenue growth and dramatically improved bottom-line results adding shareholder value for both Gresham Worldwide and the consolidated Company.”
On November 20, 2019, DPW reported that its revenues decreased by $1,963,259, or 23.5%, to $6,381,663 for the three months ended September 30, 2019, from $8,344,922 for the three months ended September 30, 2018. The decrease from the three months ended September 30, 2018, was due to a decrease in revenue from our restaurant operations, the manufacture of the Multiplex Laser Surface Enhancement (“MLSE”) plasma-laser system and from our cryptocurrency mining operations and, to a lesser extent, a decrease in revenue from customized solutions for the military markets caused by temporary shortages in components required for the manufacture of these solutions.