BANKRUPTCY PLAYS

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$FSNNQ.04 - All time low today- first day trading with the Q - Item 1.03 Bankruptcy or Receivership.

On June 3, 2019, the Company filed voluntary petitions (the “Bankruptcy Petitions,” and the cases commenced thereby, the “Chapter 11 Cases”) under the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “Court”). Consistent with the RSA, the Company intends to file the Plan with the Court within 21 days of commencing the Chapter 11 Cases and will seek to emerge from chapter 11 on an expedited timeframe. The Chapter 11 Cases are being administered under the caption In re Fusion Connect, Inc. (Case No. 19-11811). The Company will continue to operate its businesses as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code. The Company intends to continue to operate its businesses in the ordinary course during the pendency of the Chapter 11 Cases. To assure ordinary course operations, the Company is seeking approval from the Court for a variety of “first day” motions seeking various relief, authorizing the Company to maintain their operations in the ordinary course. Court filings and other information related to the Chapter 11 Cases are available at a website administered by the Company’s noticing and claims agent, Prime Clerk LLC, at https://cases.primeclerk.com/Fusion.

In connection with the Chapter 11 Cases, as contemplated by the terms of the RSA and subject to approval of the Court, Fusion has secured the backstop commitments from members of an ad hoc group of first lien lenders to provide a debtor-in-possession financing facility and expects to shortly enter into a Superpriority Secured Debtor-in-Possession Credit and Guaranty Agreement (the “DIP Credit Agreement”), by and among Fusion, as borrower, certain subsidiaries of Fusion, as guarantors, the lenders party thereto and Wilmington Trust, as administrative agent and collateral agent. The DIP Credit Agreement will provide for a superpriority secured debtor-in-possession credit facility in the aggregate principal amount of up to $59,500,000, including $39,500,000 in the aggregate principal amount of new money term loans, subject to the terms and conditions set forth therein.