Castellum, Inc. Announces Closing of $4 Million Revolver with Live Oak Bank

BETHESDA, Md., Feb. 23, 2024 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM), a cybersecurity and software services company focused on the federal government, announces that it has closed its previously announced $4 million financing with Live Oak Bank.

Castellum, Inc. ("Castellum") now has a $4 million revolving credit facility secured by cash, receivables, and the Company's other assets. As part of the transaction, Castellum rolled over approximately $625,000 drawn down on its existing revolver with Live Oak Bank, paid down $400,000 owed to Robert Eisiminger, and paid down approximately $809,000 owed to the Buckhout Charitable Remainder Trust (the "BCR Trust"). The remaining $6.0 million balance owed to Mr. Eisiminger is now due in Q3 2026. The balance of $2.4 million owed to the BCR Trust will be fully amortized over 24 months starting September 2024, with the final payment due in August 2026. $400,000 owed to another creditor in 2024 is now due in July 2025, at which point it will amortize over 8 months. Importantly, the amount owed to the BCR Trust is no longer convertible into Castellum's common stock, eliminating over 12 million shares of potential dilution from the Company's cap table. Outside the amortization of the remaining six payments on the term loan owed to Live Oak Bank, and the initial four (4) amortization payments to the BCR Trust in September – December of this year, the Company now has no debt maturities remaining in 2024.

"This debt restructuring and refinancing is a milestone event for Castellum and our shareholders. We have eliminated the debt wall, which was facing us in 2024, significantly reduced our diluted share count by restructuring the BCR Trust note into a non-convertible structure, and provided additional borrowing capacity with our new revolver," said Mark Fuller, President and Chief Executive Officer of Castellum. "As we continue to amortize our existing term loan with Live Oak Bank, our debt/cash operating profit ratio keeps improving, and we position ourselves for a much brighter future. Together with our recent equity take down from our universal shelf registration and cash from operations, this financing puts Castellum on a much stronger financial footing."