Remark Holdings Enters into Debt Exchange Agreement with Mudrick Capital Management, L.P., Resolving All Previous Default Issues

• Remark Holdings and Mudrick enter into an agreement that allows for the exchange of Mudrick's currently non-convertible notes payable from Remark for convertible notes payable that allow Mudrick to participate in Remark's equity upside
• Mudrick can convert the current $19 million of debt and accrued interest into Remark's common stock reducing the debt on Remark's balance sheet

LAS VEGAS, Aug. 7, 2024 /PRNewswire/ -- Remark Holdings, Inc. (OTCQX: MARK), a leading provider of AI-powered computer vision analytics, smart city, and smart agent solutions today announced that it has entered into a debt exchange agreement with Mudrick Capital Management L.P. that resolves Remark's events of default concerning the existing non-convertible notes payable that the company issued to Mudrick by exchanging such non-convertible notes payable for notes payable convertible into shares of the company's common stock reducing the debt on Remark's balance sheet.

"We are pleased to enter into a win-win agreement with Remark because the company has outlined a clear business plan over the next 24 months that gives us the confidence to enter into this exchange agreement. The agreement resolves all currently-outstanding events of default, but more importantly, as we convert the debt to equity, Remark's balance sheet will be strengthened and we will be able to participate in Remark's future potential. The recent sales and marketing partnerships announced with Intel, Microsoft, Nvidia, and Oracle coupled with a cutting-edge product roadmap, support a strong pipeline for the second half of 2024 and beyond, as Remark's AI products are sold by the salespersons and in the marketplaces of such heavy hitters in the industry. Previously, we successfully worked with other attractive risk-reward opportunities such as AMC Entertainment, whose balance sheet had been temporarily impaired despite strong business prospects. Remark perfectly fits our investment thesis for finding similar attractive risk-reward opportunities," says Jason Mudrick, President of Mudrick Capital.

"We want to thank Mudrick Capital for working with us while we built our business to the point at which we can all experience the fruits of our labor based on the vision established 10 years ago. Together, we turned our financial challenges into opportunities and now Remark begins the process of transforming our balance sheet to capitalize on our exciting future in AI. As we reduce our debt and increase our shareholder equity, we intend to re-list on a national exchange in the fall," said Kai-Shing Tao, Chairman and CEO of Remark Holdings.

About Mudrick Capital Management, L.P.

Mudrick Capital Management, L.P. is an SEC-registered investment management firm specializing in stressed and distressed credit investing in the U.S. and European credit markets with offices in New York and London. Mudrick manages approximately $3.3 billion as of December 31, 2023, on behalf of a diverse group of sophisticated global institutional investors. Mudrick Capital focuses on opportunities across the corporate capital structure to find investments with attractive risk-reward ratios. The goal is to provide equity-like returns with credit-like risk and volatility in an uncorrelated fashion.

Founded in 2009, Mudrick Capital has deployed over $12 billion across over 300 investments since inception. The team of seasoned research professionals, led by Chief Investment Officer Jason Mudrick, has over 180 years of combined investing experience and collectively has served on over 200 boards of directors and creditors' committees. https://www.mudrickcapital.com/about

About Remark Holdings, Inc.

Remark Holdings, Inc. (OTCQX: MARK) is the AI-powered analytics platform that brings valuable insights to the video feeds provided by current cameras and computer vision solutions through its integrated suite of AI tools that help organizations understand their customer behavior and demographics while providing real-time alerts to predetermined inspection and security parameters. Remark's international team of sector-experienced professionals has created award-winning GDPR-compliant and CCPA-compliant video analytics solutions that service the government agencies, hospitality, public safety, retail, and transportation sectors. Remark has established sales and marketing relationships with Intel, Microsoft, Nvidia, and Oracle. The company's headquarters are in Las Vegas, Nevada, USA, with operational offices in New York and international offices in London, England. For more information, please visit our home page at www.remarkholdings.com

Forward-Looking Statements

This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment, and regulations. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in the future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views with respect to future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Company Contact 

Fay Tian

Vice President of Investor Relations

Remark Holdings

[email protected]

(+1) 626-623-2000

View original content to download multimedia:https://www.prnewswire.com/news-releases/remark-holdings-enters-into-debt-exchange-agreement-with-mudrick-capital-management-lp-resolving-all-previous-default-issues-302216564.html

SOURCE Remark Holdings, Inc.