Transactions Facilitate Reduction of Short-term Debt and Potential Dilution to Shareholders
Raleigh, NC – January 29, 2020 – Mr. Jason Remillard, the Founder and CEO of Data443 Risk Mitigation, Inc. (OTCPK: ATDS), a leading data security and privacy software company, has entered into privately negotiated agreements with a number of existing holders of the company’s outstanding convertible notes, which is intended to reduce short-term debt obligations of the company, while also deferring a significant amount of debt which otherwise could have been converted into common stock. The revised terms of the existing convertible notes are as follows:
- Convertible note held by Auctus Fund, LLC (“Auctus”), with an outstanding principal balance of $1,000,000 as of January 29, 2020. Mr. Remillard has agreed to purchase this note from Auctus on or before July 1, 2020. Auctus has agreed to not exercise any conversion rights under the note until July 1, 2020, so long as Mr. Remillard remains current on a negotiated payment schedule.
- Convertible note held by Smea2z, LLC (“Smea2z”) for a total principal amount of $608,850 as of January 29, 2020. Mr. Remillard has acquired this note and has up to and until July 1, 2020 to remit the full purchase price to Smea2z. Smea2z has agreed to not exercise any conversion rights under the note until July 1, 2020, so long as Mr. Remillard remains current on a negotiated payment schedule.
- Convertible note held by Blue Citi LLC (“Blue Citi”), which was originally issued to AFT Funding Group, LLC (Blue Citi LLC acquired the Note in 2019), for a total principal amount of $444,150 as of January 29, 2020. Mr. Remillard has acquired this note and has up to and until July 1, 2020 to remit the full purchase price to Blue Citi. Blue Citi has agreed to not exercise any conversion rights under the note until July 1, 2020, so long as Mr. Remillard remains current on a negotiated payment schedule.
- Convertible note held by Blue Citi , for a total principal amount of $1,700,000 as of January 29, 2020. The maturity date of the note has been extended to March 31, 2021, affording the company more time to pay down the note. Interest on the note has stopped accruing interest as of January 1, 2020. Blue Citi has agreed to not exercise any conversion rights under the on $270,000 of principal until July 1, 2020.
Mr. Remillard stated, “By successfully completing these transactions, I personally reinforce my commitment to the company and what we stand for. As well we limit our exposure to external investors and other funds, thus managing directly our own path. While our competitors continue to raise ungodly amounts of funds, we continue to be very cash and debt efficient – while continuing to produce revenues as well from a wide base of products and services. I would like to thank all parties involved in the transactions for their support – noteholders and otherwise – for being a party to the transactions. Their continued support and commitment to our vision and ongoing execution on our business plan is an imperative for our 2020 business plan.”
“As we wrap our in house 2020 Strategic Business planning kick off in Morrisville this week with our broader and growing team, I feel more excited and energized for our future than ever before. Our sales, marketing product and technical team is growing and maturing significantly and in ways that will continue to serve our customers in the data security and privacy markets for years to come. These and future transactions reinforce the support the whole company requires to fulfil their challenging goals we have set forth this week As a result of the enhanced financial flexibility these transactions deliver, we can further invest in our business – including talent and accretive acquisitions, to drive growth and deliver shareholder value.”
About Data443 Risk Mitigation, Inc.
Data443 Risk Mitigation, Inc. (OTCPK: ATDS), is an industry leader in the data security and privacy business, providing software and services to enable secure data across local devices, network, cloud, and databases, at rest and in flight. Its suite of products and services is highlighted by: (i) ArcMail, which is a leading provider of simple, secure and cost-effective email and enterprise archiving and management solutions; (ii) ARALOC™, which is a market leading secure, cloud-based platform for the management, protection and distribution of digital content to the desktop and mobile devices, which protects an organization’s confidential content and intellectual property assets from leakage — malicious or accidental — without impacting collaboration between all stakeholders; (iii) ClassiDocs™, the Company’s award-winning data classification and governance technology, which supports CCPA, LGPD and GDPR compliance; (iv) ClassiDocs for Blockchain, which provides an active implementation for the Ripple XRP that protects blockchain transactions from inadvertent disclosure and data leaks; (v) Data443 Global Privacy Manager™, which is integrated with ClassiDocs to do the delivery portions of GDPR and CCPA as well as process Data Privacy Access Requests – removal request – with inventory by ClassiDocs; enables the full lifecycle of Data Privacy Access Requests, Remediation, Monitoring and Reporting; (vi) Data443 Protect™, which provides nearly instant Cloud-deployed Data Loss Prevention capabilities with false positive rates unmatched enabled by ClassiDocs™ ; (vii) Data443 Virtual Data Protection Officer program that offers a turnkey and outsourced DPO capability for smaller organizations; (viii) DATAEXPRESS™, the leading Data transport, transformation and delivery product trusted by leading financial organizations worldwide and, (ix) the WordPress GDPR Framework with over 30,000 active users enables organizations of all sizes to comply with the GDPR and other privacy frameworks. For more information, please visit http://www.data443.com.
The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding Data443’s plans, objectives, future opportunities for Data443’s services, future financial performance and operating results and any other statements regarding Data443’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are not guarantees of future performance and are subject to numerous risks, uncertainties, and assumptions, many of which are beyond Data443’s control, and which could cause actual results to differ materially from the results expressed or implied by the statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, and include, without limitation, results of litigation, settlements and investigations; actions by third parties, including governmental agencies; volatility in customer spending; global economic conditions; ability to hire and retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and integration of acquisitions; product liability; cybersecurity risk; and, anti-takeover measures in our charter documents. These and other important risk factors are described more fully in our reports and other documents filed with the Securities and Exchange Commission (“the SEC”), including under “Part I, Item 1A. Risk Factors”, in our Registration Statement on Form 10 filed with the SEC on January 11, 2019 and amended on April 24, 2019. Any forward-looking statement is made only as of the date of which such statement is made. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
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Source: Data443 Risk Mitigation, Inc.