Harte Hanks Announces Agreement to Repurchase Preferred Shares from Wipro

Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company, announced today that it has entered into a definitive agreement to repurchase all the Company's outstanding Series A Convertible Preferred Shares (the "Preferred Shares") from Wipro, LLC, the sole holder of the Preferred Shares. The Preferred Shares will be repurchased in exchange for (i) a cash payment equal to their liquidation value, or $9,926,000 and (ii) 100,000 shares of Harte Hanks common stock. The Preferred Shares to be repurchased are currently convertible into approximately 16% of the Company's common stock on a fully diluted basis. Harte Hanks will fund the cash portion of the repurchase consideration with a combination of cash and cash equivalents on hand and borrowings under the Company's credit facility. The repurchase is expected to close by the end of the third quarter of 2022.

"This agreement to repurchase our Preferred Shares reflects the Company's ongoing commitment to improve shareholder value. The transaction will eliminate the dilutive impact of the Preferred Shares and will eliminate certain restrictions on our use of capital and our ability to borrow funds," said Brian Linscott, Harte Hanks' CEO. Linscott continued, "we would like to thank Wipro for entering into this agreement and for their confidence and investment in our Company," noting that "Wipro was a patient and valued partner while Harte Hanks executed on our business plan and growth strategy." Jack Griffin, the Chairman of the Board Directors of Harte Hanks, also commented that "this agreement and the ultimate redemption of the preferred shares at the time of closing will continue to drive shareholder value, and serve to contribute to the attractiveness of Harte Hanks as an investment offering for both current and potential shareholders".