DATA443 ANNOUNCES FURTHER REDUCTION IN DEBT, WITH MORE SHAREHOLDER-FRIENDLY TERMS, AND SIGNIFICANT REDUCTION IN DERIVATIVE LIABILITIES
Transaction Continues Path to National Market Up-listing
RESEARCH TRIANGLE PARK, NC, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company for ALL THINGS DATA SECURITY, is pleased to announce agreements between the Company and its single largest investor, resulting in (i) $200,000 reduction in the principal owed under an existing convertible note; (ii) more shareholder-friendly fixed conversion price terms, in place of variable rate conversion terms; (iii) elimination of the derivative liability component of the note; and, (iv) leak out provisions that place limitations on the investor’s ability to convert.
MAJOR HIGHLIGHTS OF THE TRANSACTION:
- A 33% reduction in amount owed under the existing convertible note
- Fixed conversion price eliminates the derivative liability component under the convertible note, positively impacting our financial statements
- Leak out provision removes downward pressure on our stock price by limiting the amount to be converted during any week for the life of the note if it is converted
- No issuance of any additional consideration or material change in terms of the convertible note in exchange for the settlement
- Maintains cooperative and positive relationship with investor
Jason Remillard, CEO of Data443 commented, “Combined with our recent termination of virtually all outstanding warrants, this agreement represents another key milestone in our on-going efforts to substantially strengthen our financial position and improve our standing in the capital markets. This is critically important for Data443 and its shareholders, as it will lead to achieving far better (and more shareholder-friendly) financing terms to fund future acquisitions and opportunities, at a nimbler pace.”
“While reducing our outstanding debt by $200,000 is important, it is just as significant that we have eliminated the derivative liability from this note, which has long been a drag on our financials. Further, this transaction removes the variable rate conversion feature. Anytime we can reduce our debt without having to issue additional material consideration is always a win for our company. When that debt reduction is combined with the reduction in downward selling pressure that these convertible notes have had on our share price, it is a great result for our shareholders and a reason for the investing public to take further interest in our company. It is also reason to thank our investors for their continued support and a vote of confidence in our commitment to our shareholders,” concluded Mr. Remillard.