Synchronoss Announces Closing of $235 Million of Common Stock and Senior Notes Offerings

In addition, Synchronoss raised $75 million through a
private placement of preferred stock

Net proceeds used to refinance the company’s capital structure

BRIDGEWATER, N.J. , June 30, 2021 (GLOBE NEWSWIRE) — Synchronoss Technologies, Inc. (NASDAQ: SNCR), a global leader and innovator of cloud, messaging and digital solutions, today announced that on June 29, 2021 it closed an underwritten public offering of 42,307,692 shares of common stock, which included 3,846,154 shares issued in connection with the underwriters’ option to purchase additional shares, at a price to the public of $2.60 per share, for gross proceeds of approximately $110 million. The Company also announced that on June 30, 2021 it closed an underwritten public offering of $125 million aggregate principal amount of 8.375% senior notes due 2026, which included $5 million aggregate principal amount of senior notes issued in connection with the underwriters’ option to purchase senior notes. Gross proceeds for both offerings are exclusive of underwriting discounts and commissions and estimated offering expenses payable by the Company.

Synchronoss and the senior notes both received a rating of BB- from Egan-Jones Ratings Company, an independent, unaffiliated rating agency. The notes are expected to begin trading on the Nasdaq Global Select Market under the symbol “SNCRL” as early as July 1, 2021.

In addition to the public offerings, on June 30, 2021 the Company closed a private placement of 75,000 shares of its Series B Perpetual Non-Convertible Preferred Stock to B. Riley Principal Investments, LLC for an aggregate purchase price of $75 million.

The two public offerings and the private placement resulted in net proceeds of approximately $300 million after deducting underwriting discounts and commissions, but before expenses. On June 30, 2021, the Company used the net proceeds in part to fully redeem all outstanding shares of its Series A Convertible Participating Perpetual Preferred Stock owned by an affiliate of Siris Capital Group and to repay amounts outstanding under the Company’s revolving credit facility.

“Synchronoss has emerged from this comprehensive refinancing process with a solid financial foundation that will support our mission to empower our customers to connect with their subscribers in trusted and meaningful ways,” said Jeff Miller, President and CEO of Synchronoss. “Today we have a sustainable financial environment that gives us the operating flexibility required to invest in delivering and enhancing great cloud, messaging and digital experiences for our customers; to enable long-term growth; and to deliver higher stockholder value to those who invest in the company.”

The refinancing has also led to the departure of Synchronoss Board of Directors members Frank Baker, Peter Berger and Robert Aquilina, each of whom is associated with Siris Capital Group. “On behalf of the entire Board and management, I would like to thank Frank, Peter and Bob for their contributions to Synchronoss over the last three years and for their generosity as advisors to me personally,” said Miller.

In conjunction with this new capitalization, B. Riley Financial, Inc., including certain of its affiliates, serve as Synchronoss’ anchor investor. Synchronoss has granted B. Riley representation on its Board.

Bryant Riley, Chairman and Co-CEO of B. Riley Financial, Inc., commented: “We are pleased to serve as a strategic partner and financial sponsor to Synchronoss on this capitalization and are committed to leveraging the full operational and financial capabilities of our platform to support Synchronoss in its strategy to deliver value. We look forward to continuing to work closely with Jeff and the entire management team as Synchronoss enters this exciting new phase for its business.”

B. Riley Securities, Inc., acted as the lead underwriter and sole book-running manager for the common stock offering. Northland Capital Markets acted as co-manager for the common stock offering.

B. Riley Securities, Inc. acted as the sole book-running manager for the senior notes offering. Northland Capital Markets, Aegis Capital Corp. and EF Hutton, a division of Benchmark Investments, LLC acted as lead managers for the senior notes offering.

The common stock and senior notes were offered under the Company’s shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (“SEC”) on August 28, 2020. The offerings were made only by means of a prospectus supplement and accompanying base prospectus. Copies of the prospectus supplement and the accompanying base prospectus for the offering may be obtained on the SEC’s website at www.sec.gov, or by contacting B. Riley Securities by telephone at (703) 312-9580, or by email at prospectuses@brileyfin.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Synchronoss

Synchronoss Technologies (NASDAQ: SNCR) builds software that empowers companies around the world to connect with their subscribers in trusted and meaningful ways. The company’s collection of products helps streamline networks, simplify onboarding and engage subscribers to unleash new revenue streams, reduce costs and increase speed to market. Hundreds of millions of subscribers trust Synchronoss products to stay in sync with the people, services and content they love. That’s why more than 1,500 talented Synchronoss employees worldwide strive each day to reimagine a world in sync. Learn more at www.synchronoss.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements regarding the closing of the public offering and the anticipated use of the proceeds thereof. These forward-looking statements are subject to a number of risks, including the satisfaction of customary closing conditions related to the public offering and the risk factors set forth from time to time in Synchronoss’ SEC filings, including but not limited to the risks that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections (as applicable) of Synchronoss’ Annual Report on Form 10-K for the year ended December 31, 2020 and Quarterly Report on Form 10-Q for the period ended March 31, 2021, which are on file with the SEC and available on the SEC’s website at www.sec.gov. In addition to the risks described above and in Synchronoss’ other filings with the SEC, other unknown or unpredictable factors also could affect Synchronoss’ results. No forward-looking statements can be guaranteed and actual results may differ materially from such statements. The information in this release is provided only as of the date of this release, and Synchronoss undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

Contacts

Media
Anais Merlin, CCgroup (International)
Diane Rose, CCgroup (North America)
synchronoss@ccgrouppr.com

Investors
Todd Kehrli/Joo-Hun Kim, MKR Investor Relations, Inc.
investor@synchronoss.com

The International Action Centre issues the following statement on: CAPE VERDE TAKES ON THE UNITED NATIONS

PRAIA, Cape Verde, June 30, 2021 (GLOBE NEWSWIRE) — In a decision on interim measures dated June 8, the United Nations Human Rights Committee called on Cape Verde to “refrain from extraditing Mr. Alex Saab to the United States of America” and to “take all necessary measures to ensure access to appropriate health care […] by independent and specialized physicians of his choice”. This decision ordering interim measures is the first urgent step resulting from the registration of a complaint filed by Alex Saab before United Nations Human Rights Committee.

In an interview on June 29, 2021, the Cape Verdean Prosecutor General, Mr Jose Luis Landim, makes a frontal attack on the United Nations, claiming that the UN Human Rights Committee does not have the competence to impose the suspension of the extradition of Alex Saab from Cape Verde to the United States of America.

Such a position is alarming and is a legal, strategic and ethical mistake.

First, this position is completely wrong in law. We would like to remind Mr Landim that Cape Verde has chosen to ratify the International Covenant on Civil and Political Rights since August 6, 1993 and the Optional Protocol to the International Covenant on Civil and Political Rights since May 19, 2000. It must therefore comply with its international obligations in good faith and fully respect the decisions of the expert body responsible for interpreting the International Covenant on Civil and Political Rights, the Human Rights Committee. Saying that the Committee does not have the power to request the suspension of an extradition that may expose someone to risks of irreparable harms and of violations of the right to life and right of physical integrity, is an unforgivable legal error totally incompatible with the rule of law.

Second, such a position is a frontal attack on the United Nations and the human rights that are at the heart of the values that the Organization defends. It sends a clear message to the world that Cape Verde can exercise its sovereignty to violate human rights while ignoring the norms of international human rights law to which it has subscribed and ignoring international decisions. In doing so, Cape Verde, after defying the ECOWAS Court of Justice which ordered it to release the arbitrarily detained Alex Saab, after violating Alex Saab’s diplomatic immunity as a Special Envoy and an Ambassador to the African Union, is taking a hostile stance towards the United Nations and placing itself on the outside of the international community.

Third, such a position is a mistake in terms of fundamental ethical values. By requesting the suspension of Alex Saab’s extradition pending the examination of the merits of the case, the Human Rights Committee was inviting Cape Verde to show humanity and common sense by considering that the extradition would be detrimental to the physical integrity and life of Alex Saab. The Committee did not take a political position, but a purely humanitarian one.

MEDIA Contact:
Sara Flounders
International Action Center
Https://www.iacenter.org
E-mail: iacenter@iacenter.org
Tel: +1 212-633-6646

Burkina Faso’s President Sacks Defense Minister

Burkina Faso’s President Roch Kabore has dismissed the country’s defense minister in the wake of widespread protests Saturday against insecurity.

Cherif Sy had been defense minister since the country’s conflict with domestic terror groups started in 2015. His replacement is the president himself, along with a minister delegate, Colonel Major Aimé Simpore, who has been appointed to assist.

At the beginning of June, Burkina Faso saw its worst terrorist attack on civilians since the conflict with armed groups linked to al-Qaida and Islamic State started. At least 138 people were killed in the village of Solhan.

The attack triggered a wave of protests against insecurity that swept the country last weekend. Sy’s departure was one of the protesters’ major demands.

Sy was sacked Wednesday, as was Security Minister Ousséni Compaoré, who was replaced with Maxim Kone, a foreign affairs deputy.

Will changes bring calm?

So what does this reshuffle in leadership mean for the country?Burkinabe analyst and activist Siaka Coulibally said public opinion was mixed, and even if some accepted the ministers’ departures as a concession, it’s dubious as to whether it’s enough to reverse the negative effect of terrorism across the country. Whether the reshuffle will be enough to calm the anger depends on whether there are new attacks, he said.

The fighting in Burkina Faso is at its most intense in the east of the country and in the northern province of Sahel. Izidag Tazoudine, a local official from the tri-border region of Sahel province, where Burkina Faso’s border meets with Mali and Niger, said he was hopeful that things would change after the reshuffle.

Since Sy has been in office, Tazoudine said, there have been attacks and discontent, such as that in the northern communities of Solhan, Markoye and Barsalogho, where insurgents ambushed and killed 11 police officers in late June. That’s why people wanted the president to change the ministers of defense and security. Tazoudine said that because those moves have been made, it’s believed that things will change now.

Smockey, a local hip hop artist and co-founder of Citizen’s Broom, a civil society group that played a central role in ousting the country’s former dictator in 2014 as well as in organizing last weekend’s protests, said the recent actions weren’t enough for virtuous governance. It is necessary, he said, to tackle problems at all levels of the state and not only these two key ministerial posts.

No risk of coup seen

Philippe M. Frowd, an associate professor at the University of Ottawa and an expert on security in the Sahel, was asked whether he thought the protests could escalate into a coup, as happened in neighboring Mali recently.

“I don’t sense a strong similarity with Mali in the sense of fragmentation within the armed forces or very strong inter-elite tensions that would typically be what goes into the recipe for a coup,” he said. “So I don’t think Burkina Faso is immediately in that risk zone.”

Meanwhile, opposition leader Eddie Kombiego said the reshuffle would not be enough to return security to the country. The opposition is determined to push ahead with further protests this weekend.

Source: Voice of America

UN Agencies Warn of Worsening Humanitarian Catastrophe in Tigray

U.N. aid agencies warn of a looming humanitarian catastrophe in northern Ethiopia’s battle-scarred Tigray region if they are prevented from delivering life-saving assistance to this stricken area.

The Ethiopian government’s tenuous unilateral ceasefire in Tigray after eight months of conflict has not got off to a good start. The U.N. refugee agency reports the electrical power and phone networks in its offices in the capital Mekelle are not functioning, hampering its ability to deliver humanitarian aid.

The U.N. children’s fund has condemned the pillaging of its video equipment Monday by members of the Ethiopian National Defense Forces, warning 140,000 acutely malnourished children were at risk of dying without urgent nutritional treatment.

The World Food Program is demanding full access to Tigray to deliver life-saving food assistance to millions of hungry people. Among them, it says, are half a million children, women and men who face starvation over the coming months.

The World Health Organization reports the region’s health system has collapsed. WHO spokesman, Tarik Jasarevic, says WHO can do little to help the beleaguered population because access to the area is extremely limited.

“We are obviously concerned about potential for cholera, measles, and malaria outbreaks in the region. In addition, Tigray region is also located on the meningitis belt and is at risk of yellow fever outbreaks… People are also at risk of death from lack of access to health services to treat any other diseases that may happen,” he said.

Despite the cease-fire, fighting continues in Tigray. Jasarevic says WHO is taking measures to strengthen the security and wellbeing of its staff. He says efforts to provide essential health care is ongoing where it is possible to do so. However, he adds, what WHO staff can do does not approach the enormity of the needs.

“Now, with hospitals that are barely functioning, people being displaced, and the looming famine, the risk of communicable and vaccine-preventable diseases spreading due to the lack of food, clean water, safe shelter and access to health care is very real. All these factors combined are literally a recipe for larger epidemics,” he said.

WHO reports an estimated 3.5 million people are at risk of cholera. It says six million people are vulnerable to malaria, especially malnourished children. It says they are at particular risk of dying from this deadly vector-borne disease.

An oral cholera vaccine campaign targeting two million people, which began on June 12 was only able to reach 50% of the targeted population. WHO reports this was due to the conflict and difficulty in reaching the region’s widely spread population by road.

The agency reports attacks on health care, the looting and destruction of cold chain — the system used for storing vaccines correctly — and the general dangers posed by the warring parties has had a harmful impact on this life-saving operation.

Source: Voice of America

Nigerian Women Lead Reintegration of Ex-Boko Haram Militants

The Nigerian government’s efforts to reintegrate former Boko Haram militants has seen hundreds of fighters go through rehabilitation. But it also gets pushback from the conflict’s victims, who want the militants to be held accountable. At a conference in the capital, women from the conflict-affected areas are getting support to head up reconciliation between the former terrorists and their communities.

Some 45 women from Nigeria’s northeastern states of Borno, Adamawa and Yobe file in for a two-day conference in Abuja.

They’re here to discuss a sensitive subject – the reconciliation and reintegration of ex-Boko Haram fighters into their communities.

The conference is a joint initiative by the non-profit Center for Humanitarian Dialogue in Switzerland, U.N. Women and the International Organization for Migration (IOM). It’s designed to promote women-led community peacekeeping in the northeast, said Millicent Lewis-Ojumu, director at Center for Humanitarian Dialogue.

“We know and from experience have seen that when the women are involved in the conversations, peace building, in helping to resolve issues relating to how to reintegrate and rehabilitate former combatants or person’s associated with Boko Haram, that they are very effective,” said Lewis-Ojumu.

Since launching the safe exit program, “Operation Safe Corridor” for repentant fighters in 2016, authorities say the program has met with resistance from host communities.

The scheme was launched as part of a growing awareness for the use of amnesty to persuade terrorists to lay down their guns. Nearly 1,000 ex-fighters have been rehabilitated under the government’s program.

But very few are successfully living in communities. Most of them eventually rejoin Boko Haram due to rejection.

Hamzatu Alamin is one of the participants at the conference. She started talking about reconciliation 10 years ago when her community was hit hard and young men were coerced into joining Boko Haram.

But she said her efforts attracted some unwanted attention.

“You can be arrested by state actors and accused of being an accomplice. And secondly, the boys (Boko Haram), if you make a mistake, you can be their target,” she said.

Women like Alamin here said they hope to improve their community’s acceptance of former jihadists after the conference.

But attending the conference along with other women also lifts the burden of being negatively labeled with terrorists.

“I have been communicating with them. I am now able to say it freely because I know that even the government is communicating with them. The government and security forces are using many of the boys I communicate with as outlets to get the people they’re rehabilitating,” she said.

Maria Quintero, program manager at IOM Nigeria, said women also need socioeconomic stability if the program is to succeed.

“The Nigerian women are very strong. What we have found as well is that they’re very influential in the decision of the males. Women have a role to play especially when it comes to males coming back to the communities,” said Quintero.

More than 35,000 people have been killed and millions displaced since the start of the Boko Haram insurgency in 2009. Boko Haram, which opposes Western education, has frequently targeted schools.

Source: Voice of America

IMF Approves $50B in Debt Relief, $2.4 Billion Funding to Sudan

As they move their country toward democracy and elections, Sudan officials are hoping that a massive economic boost the international banking community provided this week will wipe out decades of debt and bring stability.

“The transitional government has now secured a way to relieve Sudan’s debt so that the burden is lifted in a very short time,” Sudan Prime Minister Abdalla Hamdok said in a nationwide address Tuesday night after the International Monetary Fund had approved $50 billion in debt relief and $2.4 billion in funding.

The decision signals Sudan’s full reengagement with the international community and multilateral financial institutions — including the World Bank, the African Development Bank and the IMF — for the first time in decades.

Historic decision

Carol Baker, IMF mission chief for Sudan, Middle East and Central Asia, called Tuesday’s decision historic.

“Sudan did indeed reach the HIPC (Heavily Indebted Poor Countries) Decision Point. What that means is that it has now cleared its arrears to IMF, the World Bank and the African Development Bank,” Baker told South Sudan in Focus.

Sudan owed roughly $3 billion total to the three agencies, which has been paid off through bilateral and multilateral loans. The IMF estimates Sudan’s total debt was $56.6 billion at the end of 2020 — accumulated mostly in arrears and penalties over several decades. The IMF’s portion of the debt was $1.4 billion, which has just been paid off with contributions from some of the 120 member countries.

New Sudan program

Sudan’s new Extended Credit Facility (ECF) Arrangement, which started Tuesday, will put the country on a path to debt relief through inclusive growth and poverty reduction.

The IMF approved $2.4 billion in financing to Sudan, $1.4 billion of which had already been used toward clearing Sudan’s arrears with the IMF. The remainder will be used to catalyze concessional donor financing, according to an IMF news release.

The World Bank also announced Tuesday it has $2 billion in project finance grants available to Sudan over the next two years.

The next step in the HIPC process is to confer “traditional relief,” which will see bilateral and commercial creditors provide debt relief for Sudan on more typical terms.

Baker said Sudan should now reach out to its creditors in the Paris Club, a group that owns more than 40% of Sudan’s debt, and start negotiating terms of its debt relief with them. Sudan is also expected to reach out to other creditors to achieve favorable terms in the interim period between what the IMF calls “the HIPC Decision Point,” announced Tuesday, and “the HIPC Completion Point.”

Ready to negotiate

Magdi Amin, senior economic adviser at Sudan’s Ministry of Finance and Economic Planning, tweeted on his page that “Sudan will proceed to negotiations with the Paris Club in July.”

He welcomed Sudan’s entry into the HIPC debt relief initiative and called it “the result of the patience and strength of the people of Sudan in responding to its economic challenges with reform.”

Under HIPC, which Sudan has been implementing for the past six months, Sudan’s transitional government has enacted a reform program that has devalued the Sudanese currency against the U.S. dollar, eliminated its customs exchange rate, and lifted subsidies on diesel and gasoline, which led to sharp increases in commodities prices and sparked street protests against the government in the capital Khartoum. Sudan’s inflation rate is soaring at more than 370%, one of the highest in the world.

The immediate benefit is that Sudan has gained access to $4 billion to finance urgently needed social and development programs, said Hamdok. The World Bank International Development Association will provide $2 billion of that amount. The money will be spent on electricity, water, and basic services such as education and health care.

Completion point

Under HIPC, Sudan’s total debt relief is expected to be $50 billion, leaving Sudan with only $6 billion in debt at the end of the process, which is expected to happen in June 2024, said Baker.

Sudan would have to fulfill IMF “completion triggers,” policies aimed at strengthening Sudan’s economy, ensuring that it does not go back into debt, and creating strong poverty reduction and growth programs.

Sudan is the 38th country to be accepted into the IMF’s HIPC initiative since its inception in 1996.

Source: Voice of America

Contribution to augment National Fund

In their fifth round of contribution, nationals residing in the Republic of South Sudan contributed 90 thousand 975 USD and 16 million 753 thousand South Sudanese Pounds to augment the National Fund to fight the COVID-19 pandemic.

According to a report from the Embassy of Eritrea in South Sudan, employees of various businesses contributed 71 thousand 825 USD as well as 16 million and 753 thousand South Sudan Pounds, owners of ‘Emiha’ General Construction and Trading Company 3 thousand USD, owners of small hotels, garages, clinics, pharmacies, and other businesses contributed 16 thousand 150 USD.

It is to be recalled that, nationals residing in the Republic of South Sudan have contributed 589 thousand 990 USD and 6 million 525 thousand 800 South Sudan Pounds in the last four rounds of contribution.

In related news, at a commemorative event conducted in connection with 20 June, Martyrs Day, nationals residing in Qatar have contributed 1 thousand 996 Riyals to augment the Martyrs Trust Fund, the Embassy of Eritrea in Doha reported.

Source: Ministry of Information Eritrea