Data443 Secures $1.5 Million in Growth Capital, Renegotiates Debt at Improved Terms

By Globe Newswire Published on July 25, 2023, 02:49 IST

RESEARCH TRIANGLE PARK, N.C., July 24, 2023 (GLOBE NEWSWIRE) — via IBN — Data443 Risk Mitigation, Inc. (OTCPK: ATDS) (“Data443” or the “Company”), a data security and privacy software company for “All Things Data Security,” announces today the successful completion of a series of Transactions (the “Transactions”) that achieve an additional $1.5 million in growth capital to the Company, while retiring certain outstanding debt obligations.

The Transactions included a direct investment of $1.5 million, an exchange of an outstanding note for a new note under new terms, and the release of specific security interests on portions of the Company’s assets. These Transactions support several important goals for Data443 in reducing outstanding indebtedness at improved terms, providing the Company greater flexibility to close outstanding technology acquisitions, while positioning Data443 for its previously announced intention to list on a major stock exchange.

Dawson James Securities Inc. acted as the sole placement agent.

Jason Remillard, Data443’s CEO and founder commented: “We are pleased with the outcome of our debt refinancing efforts which represents a very productive step in assuring our long-term viability and delivering shareholder value. We appreciate the efforts of all parties to complete the Transactions at terms that align and benefit all parties. Notwithstanding the persisting market uncertainties, we raised the funds necessary to facilitate and close accretive transactions while retiring debt. Importantly, this debt retirement positively impacts our shareholder equity ratio, a critical factor in meeting the prerequisites for a listing on a premier stock exchange.”

Today’s announcement follows Data443’s recent definitive agreement to acquire certain assets from Cyren Ltd. (“Cyren”). Cyren’s Cyber Threat Intelligence (CTI) offers unmatched competencies for global email service providers, hardware producers, and managed service providers, as Business Email Compromise (BEC) continues to be the main delivery path for all types of ransomware and data thefts. Cyren’s CTI services consolidate multiple data streams to monitor, protect and recover from all cyber attacks.

Additional detail on the Transactions can be found in the Company’s filings with the Securities Exchange Commission, which can be found at https://www.sec.gov.

About Data443 Risk Mitigation, Inc.

Data443 Risk Mitigation, Inc. (OTCPK: ATDS) provides software and services to enable secure data across devices and databases, at rest and in flight/in transit, locally, on a network or in the cloud. We are All Things Data Security™. With over 10,000 customers in over 100 countries, Data443 provides a modern approach to data governance and security by identifying and protecting all sensitive data regardless of location, platform or format. Data443’s framework helps customers prioritize risk, identify security gaps and implement effective data protection and privacy management strategies.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by use of terms such as “expect,” “believe,” “anticipate,” “may,” “could,” “will,” “should,” “plan,” “project,” “intend,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue” or the negative of these words or other comparable terminology. Statements in this press release that are not historical statements, including statements regarding Data443’s plans, objectives, future opportunities for Data443’s services, future financial performance and operating results, and any other statements regarding Data443’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance, or regarding the anticipated consummation of any transaction, are forward-looking statements. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties and assumptions, many of which are difficult to predict or are beyond Data443’s control. These risks, uncertainties and assumptions could cause actual results to differ materially from the results expressed or implied by the statements. They may relate to the outcome of litigation, settlements and investigations; actions by third parties, including governmental agencies; volatility in customer spending; global economic conditions; inability to hire and retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and integration of acquisitions; product liability; cybersecurity risk; anti-takeover measures in the Company’s charter documents; and the uncertainties created by global health issues, such as the ongoing outbreak of COVID, and political unrest and conflict, such as the invasion of Ukraine by Russia. These and other important risk factors are described more fully in the Company’s reports and other documents filed with the Securities and Exchange Commission (“the SEC”), including in Part I, Item 1A of the Company’s Annual Report on Form 10-K filed with the SEC on Feb. 24, 2023, and subsequent filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the Company on the date hereof. Except as otherwise required by applicable law, Data443 undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise.