Approval of Reverse Stock Split Intended to Satisfy Stock Price Requirement for Initial Listing
RESEARCH TRIANGLE PARK, NC, February 23, 2021 – Data443 Risk Mitigation, Inc. (“Data443” or the “Company”) (OTCPK: ATDS), a leading data security and privacy software company, has filed a PRE 14C Information Statement with the U.S. Securities and Exchange Commission that details the following proposals, which have been approved by both the Company’s Board of Directors and the holders of a majority of the Company’s shares entitled to vote on the matter: (i) a reduction in the authorized number of common shares of not less than 10,000,000 and not more than 1,000,000,000 shares; and, (ii) a reverse stock split of the Company’s common stock at a ratio of not less than 1-for-10 and not more than 1-for-2,000 shares. The actions may be taken within the designated ranges by the Company’s Board of Directors at any time over the next 12-months.
In order to uplist to The Nasdaq Capital Market, the Company’s common stock must evidence a closing bid price of at least $4.00 per share for 30 of 60 days both prior to submitting an initial listing application to and the Company’s actual listing on Nasdaq. The Company’s Board of Directors has been authorized to implement a reverse stock split within the designated range set forth above in order to satisfy the Nasdaq price requirement. Although the Company anticipates compliance with the price requirement subsequent to implementation of a reverse stock split, there can be no assurance that the Company will in fact satisfy the price requirement or other criteria for initial listing on Nasdaq or that the Company will ultimately be approved for listing on Nasdaq.
Jason Remillard, founder and CEO of Data443, commented, “We firmly believe that this share restructuring is in the best interest of all shareholders as we expect the reverse split will allow us to satisfy the minimum stock price criteria, which is a critical step to obtaining a Nasdaq listing. By rationalizing our capital structure, we believe we can attract greater investor interest in Data443 and reduce the cost of future financings that can support our current growth trajectory. A final decision on the exact ratio for the reverse split will be determined shortly.”
Further details are included in the 14-C filing, which can be found at https://www.sec.gov/Archives/edgar/data/1068689/000149315221004628/formpre14c.htm.
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