WHITE PLAINS, N.Y., Feb. 21, 2012 /PRNewswire via COMTEX/ -- Pervasip Corp. (OTCQB: PVSP) (the "Company"), a provider of mobile VoIP and video telephone services that utilize cloud-based technology, announced today that JDM Group, LLC ("JDM") has made an initial payment of $600,000 to the Company's secured lenders, which resulted in a debt reduction to the Company of $4,779,634. JDM contracted with the Company's secured lenders to pay $1,500,000 over a ten-month period to purchase $13,949,086 of debt, commencing February 15, 2012. JDM remitted the first payment of $600,000, and the Company's secured lenders have assigned to JDM 40% of the debt owed by the Company, or $5,579,634. In conjunction with such assignment from the Company's secured lenders, JDM has reduced the debt that the Company owes to JDM by $4,779,634.
Pervasip's CEO, Paul Riss, stated, "We are pleased that more than one-third of the debt that we owe to our secured lenders has already been cancelled. The settlement agreement with our secured lenders also calls for a zero percent interest rate as long as timely payments are made to our secured lenders from JDM. We believe the reduced interest expense and debt will substantially improve our financial position in the 2012 fiscal year and help position us for growth in the mobile VoIP and video VoIP marketplace."
About Pervasip Pervasip Corp. delivers VoIP and video telephone services for the residential and small business markets, using cloud-based telephony. It differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. Pervasip recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.
FORWARD-LOOKING STATEMENTS The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For further information:
AT PERVASIP: Paul H. Riss Chief Executive Officer Ph: 212-404-7633 phriss@pervasip.com
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