---
schema_version: "secwatch.filing_event.v1"
accession: "0001101680-24-000013"
form_type: "8-K"
ticker: null
cik: "0001101680"
company_name: "DZS INC."
filed_at: "2024-01-05T23:59:59+00:00"
generated_at: "2026-06-07T02:54:39.735292+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# DZS secures $25M funding and signs $48M Asia divestiture to DASAN Networks

## Summary
- $15M 3-year term loan at 13% fixed rate; 6.1M warrants at $1.84 issued to lender EdgeCo.
- $10M private placement of common stock at $1.84/share to IV Global Fund, an affiliate of DASAN Networks.
- Definitive agreement to sell Asia business to DASAN Networks for $48M ($5M cash + $43M debt elimination); expected close February 2024.
- Divestiture aligns with strategy to focus on Americas, EMEA, ANZ higher-margin regions; management expects improved gross margins by end of 2024.
- Combined new working capital of $30M ($25M funding + $5M sale cash) strengthens balance sheet for government stimulus programs.

## SEC filing metadata
- accession: 0001101680-24-000013
- form_type: 8-K
- cik: 0001101680
- company_name: DZS INC.
- filed_at: 2024-01-05T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/dzsi-20231229.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001101680-24-000013
- JSON: https://secwatch.observer/filing/0001101680-24-000013.json
- Plain text: https://secwatch.observer/filing/0001101680-24-000013.txt

## Key facts
- Debt Financings
  DZS INC. incurred loan of $15,000,000 with EdgeCo, LLC at 13.0% per annum maturing December 29, 2026.
  - Instrument: loan
  - Principal: $15,000,000
  - Counterparty: EdgeCo, LLC
  - Rate: 13.0% per annum
  - Maturity: December 29, 2026
  - Event: incurrence
  source text: the Company received a three-year term loan in an aggregate principal amount equal to $15,000,000 (the “Loan”). The principal amount of the Loan is payable on December 29, 2026 and bears interest at a fixed rate of 13.0% per annum.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- Material Agreements
  DZS INC. entered into EdgeCo Registration Rights Agreement with EdgeCo, LLC (effective 2023-12-29).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: EdgeCo, LLC
  - Effective: 2023-12-29
  source text: (ii) a Registration Rights Agreement (the “EdgeCo Registration Rights Agreement”), dated as of December 29, 2023, by and between the Company and EdgeCo
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- Material Agreements
  DZS INC. amended Amended and Restated Registration Rights Agreement with IV Global Fund No. 4 and DASAN Networks, Inc..
  - Action: amendment
  - Agreement: equity purchase
  - Counterparty: IV Global Fund No. 4 and DASAN Networks, Inc.
  source text: In connection with the closing of the transaction contemplated by the Securities Purchase Agreement, the Company, IV Global Fund and DNI entered into an Amended and Restated Registration Rights Agreement (the “Amended and Restated Registration Rights Agreement”)
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- Material Agreements
  DZS INC. entered into Securities Purchase Agreement with IV Global Fund No. 4 valued at approximately $10,000,000 (effective 2023-12-29).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: IV Global Fund No. 4
  - Value: approximately $10,000,000
  - Effective: 2023-12-29
  source text: On December 29, 2023, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with IV Global Fund No. 4, a Korean limited partnership (“IV Global Fund”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- Material Agreements
  DZS INC. entered into Warrant Agreement with EdgeCo, LLC (effective 2023-12-29).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: EdgeCo, LLC
  - Effective: 2023-12-29
  source text: In connection with the Loan Agreement, the Company also entered into (i) a Warrant Agreement (the “Warrant Agreement”), dated as of December 29, 2023, by and between the Company and EdgeCo
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm
- Material Agreements
  DZS INC. entered into Loan Agreement with EdgeCo, LLC valued at $15,000,000 (effective 2023-12-29).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: EdgeCo, LLC
  - Value: $15,000,000
  - Effective: 2023-12-29
  source text: On December 29, 2023, DZS Inc., as borrower (the “Company”), entered into a Loan Agreement (the “Loan Agreement”) with EdgeCo, LLC (“EdgeCo”), as lender.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000013/0001101680-24-000013-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.