Strengthens Balance Sheet, Removes over $10 Million in Derivative Liabilities
RESEARCH TRIANGLE PARK, NC, February 18, 2021 – Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, is pleased to announce that it has retired all outstanding debt liabilities with a variable conversion rate feature. The immediate impact on the Company’s financials is the elimination of over $10,000,000 in derivative liabilities.
With the culmination of extraordinary efforts and negotiations, all outstanding convertible notes have been settled at beneficial rates. Additionally, the shares issued are subject to specific ‘leak out’ provisions to afford our shareholders additional protection.
Effective February 16, 2021, all outstanding convertible variable rate notes issued by the Company are:
- Retired and nullified
- No prepayment or other penalties applied
- No warrants or other consideration was issued
- Shares issued are subject to measured and protective leak out provisions
“We are very excited to be able to deliver on this significant milestone,” commented Jason Remillard, President, and Founder of Data443. “As the Company moves forward with its business plan, we have also been working continuously to improve our balance sheet, cap table, and debt position. We felt it was essential to take this next step now to rationalize and simplify our current financial condition, enhance our market positioning, and position us for continued growth as we move into the next phase of the Company’s maturation.”
“These transactions provide us immediate benefits in terms of our ability to grow Data443. Moving from convertible debt instruments to more shareholder-friendly financing arrangements will allow us to raise capital for organic growth and acquisitions more efficiently at much better terms. Leveraging these benefits will continue to be important throughout the year as we continue on our growth trajectory. Our continued progress and maturation as an organization continues to be realized and demonstrated with our performance in the marketplace and with customers,” concluded Mr. Remillard.
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