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Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS

 

Corporate Acquisition

 

On October 4, 2021, the Company completed the acquisition of SAGUNA Networks LTD (“SAGUNA”), a Israeli company for total consideration of approximately $13.6 million worth of shares of restricted common stock.

 

Public Offering of Preferred Series A

 

On October 29, 2021 (the “Preferred Series A Offering Closing Date”), the Company sold an aggregate of 320,000 shares of the Company’s newly-designated 9.25% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”), at a public offering price of $25.00 per share, which is the initial liquidation preference of the Series A Preferred Stock. Pursuant to the terms of the Underwriting Agreement dated October 26, 2021, the Company granted the Underwriters a 30-day option to purchase up to an additional 48,000 shares of Series A Preferred Stock. The Series A Preferred Stock was offered and sold pursuant to a prospectus supplement, dated October 26, 2021 (the “Prospectus Supplement”), and a base prospectus, dated September 14, 2021, relating to the Company’s effective shelf registration statement (the “Registration Statement”) on Form S-3 (File No. 333-259307).

 

The Series A Preferred Stock has been listed on The Nasdaq Capital Market under the symbol “COMSP”.

 

On the Preferred Series A Offering Closing Date, the Company received gross proceeds of approximately $7.2 million, before deducting underwriting discounts and commissions of eight percent (8%) of the gross proceeds and estimated offering expenses.

 

The total expenses of the Preferred Series A Offering were approximately $0.9 million, which included the underwriting discounts and commissions and the Representative’s reimbursable expenses relating to the Preferred Series A Offering.

 

The Company intends to use $2.75 million of the net proceeds from the Offering for the repayment of certain indebtedness and the balance for general corporate and working capital purposes.