DZS Secures $29.7 Million in Loans to Pay off Debt

by Warren Seah

Shares of DZS have soared by a quarter following the company’s successful acquisition of $29.7 million in loans. This significant funding will be utilized to pay off existing term debt and line of credit, providing a much-needed boost to the company’s financial position.

DZS, a leading supplier of networking and cloud software solutions, has experienced a remarkable 25% increase in its stock value, reaching $2.29 during early trading. Despite this recent surge, shares remain down by more than 82% for the year.

DNI, a major stakeholder with a 29% ownership in DZS, has played a crucial role in facilitating this financing. DASAN Networks (DNI) has provided a three-year term loan amounting to $24.5 million, solidifying its commitment to supporting DZS’s growth and success. DNI Chief Executive Min Woo Nam expressed optimism in the partnership, stating, “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 cash flow.”

Additionally, DZS has secured approximately $5.2 million in short-term loans through its South Korean banking partners.

This recent development holds great promise for DZS as it strives to strengthen its financial footing and pursue new opportunities within the industry.

You may also like

Leave a Comment