Agreement Provides Data443 with Fresh Significant Investment Capital on Favorable Terms on Path to Senior Exchange Up-list
RESEARCH TRIANGLE PARK, NC, December 17, 2020 – Data443 Risk Mitigation, Inc. (OTCPK: ATDS), the leading data security and privacy software company for ALL THINGS DATA SECURITY™, is pleased to announce it has entered into a common stock purchase Agreement (the “Purchase Agreement”) with investment firm Triton Funds LP (“Triton”), under which Triton is obligated to purchase up to $1 million of the Company’s common stock from time-to-time through June 30, 2021.
As part of the Purchase Agreement, Data443 has the right to sell shares of its common stock to Triton at a per share price of $0.006, so long as the closing price for is Data443 shares is at least $0.009. The total number of shares Triton will purchase under the Purchase Agreement is 166,666,667. In addition, in connection with the Purchase Agreement, Triton may also invest up to an additional $1 million pursuant to a warrant agreement included in the Purchase Agreement, which has a purchase price of $0.01. The total number of shares available for purchase by Triton (266,666,667 shares) must be reserved for purchase with the Company’s transfer agent. Data443 will use the proceeds from the sale of its common stock to Triton for general corporate, working capital purposes, additional acquisitions, and debt retirement. In connection with the Purchase Agreement, Data443 will be filing a registration statement on Form S-1 under which, and when effective, the shares sold to Triton will be offered and registered.
Jason Remillard, CEO of Data443 commented, “Triton has been a pleasure to work with and we are excited to have them invest in Data443 as true equity investors. Their investment will help us drive growth and continue to exercise on our strategic plan. Triton’s equity investment represents another great vote of confidence in our Company and validates our commitment to strengthening our capital structure to take advantage of the growing market for further accretive acquisitions, while delivering value to our stockholders. Retirement of derivative based debt also greatly strengthens our position for our planned major market up list.”
Ashkan Mapar, Principal and Portfolio Manager at Triton Funds, commented “We conduct due diligence on, and consider investments in myriad companies. Very few of those pass our strict requirements and satisfy our metrics for investment. We are excited to have Data443 be one of the few companies to join our list of portfolio investments. The company’s recurring revenue model and dynamic offering of products and services in the cybersecurity marketplace makes for a sustainable model and unlimited growth. We were further impressed with Jason’s vision for the future of the company and we have confidence in his ability to lead the company to great success. Triton takes great pleasure in being a financial and strategic partner of Data443.”
In order to facilitate the Purchase Agreement and the stock sales to be completed with Triton Funds, the Company withdrew the S-1 filed on January 30, 2020, which was originally structured for stock purchases by PAG Group LLC. Additionally, the Company needed to increase the number of authorized shares of common stock so those shares could be reserved with the Company’s transfer agent for issuance to Triton. As such, the Company has increased its authorized number of shares of common stock from 1.5 billion to 1.8 billion.
About TRITON FUNDS LLC
Triton Funds is the nation’s largest student venture investment fund, managed entirely by students from UC San Diego located in Southern California. With $25M AUM, Triton Funds has taken an active part in both the San Diego ecosystem and nationwide, focusing on investments that will have a lasting positive impact on the Millennial generation with a portfolio of both private and public companies. The aim of Triton Funds is to create a student learning platform that will provide real-world experience and help bridge the gap between a STEM dominated university and Wall Street, helping students jumpstart their careers in finance, while providing strategic capitalization, business development support, and engineered exits to organizations with a viable future in the modern economy. Follow the Triton Funds story by visiting the Triton Funds website, Instagram, Twitter, or reach out directly via email. More information can be found at http://www.tritonfunds.com
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