By Dean Seal
Shares of DZS jumped by a quarter after the company secured $29.7 million in loans that will be used to pay off its existing term debt and line of credit.
The stock was up 25% at $2.29 in early trading. Shares are still down more than 82% so far this year.
The supplier of networking and cloud software solutions said the financing includes a $24.5 million, three-year term loan from DASAN Networks, or DNI, which is a 29% shareholder.
"DNI expects DZS to convert many of the active trials across North America and EMEA to new customer logo wins in 2023 and 2024 as well as implementing a disciplined focus on net operating income and free cashflow," DNI Chief Executive Min Woo Nam said.
DZS has also secured about $5.2 million in short-term loans with South Korean banking partners.
Write to Dean Seal at firstname.lastname@example.org
(END) Dow Jones Newswires