Data Storage Corporation Announces Closing of Upsized $10.8 Million Public Offering
May 18 2021 - 1:56PM
Data Storage Corporation (NASDAQ: DTST, DTSTW) (“DSC” and
the “Company”), a provider of diverse business continuity,
disaster recovery protection, and cloud infrastructure solutions
and services, today announced the closing of its previously
announced underwritten public offering of 1,600,000 units at a
price to the public of $6.75 per unit. Each unit issued
in the offering consisted of one share of common stock and one
warrant to purchase one share of common stock at an exercise price
of $7.425. The common stock and warrants were immediately
separable and were issued separately. The common stock and warrants
began trading on the Nasdaq Capital Market, on May 14, 2021,
under the symbols "DTST" and "DTSTW,"
respectively. DSC received gross proceeds
of approximately $10.8 million, before deducting underwriting
discounts and commissions and other estimated offering expenses.
All share numbers and pricing information in this press release
reflect the Company’s previously announced 1-for-40 reverse stock
split of its issued and outstanding common stock, which was
effective at 12:01 a.m., Eastern Time, on May 14, 2021.
In connection with the offering, the
underwriter, Maxim Group LLC, partially exercised its
overallotment option and purchased an additional 240,000 warrants
at $0.01 per warrant for additional gross proceeds of $2,400.
The Company expects to use the net proceeds of
the offering to fund sales force expansion, marketing and business
development, the cash portion of the merger consideration payable
in connection with its pending acquisition of Flagship Solutions,
LLC (‘Flagship”), potential acquisitions, accrued and unpaid
dividends on the Company’s outstanding Series A preferred stock and
working capital.
Maxim Group LLC acted as sole book-running
manager for the offering.
The offering was conducted pursuant to the
Company's registration statement on Form S-1 (File No. 333-253056),
as amended, previously filed with and subsequently declared
effective by the Securities and Exchange Commission (“SEC”), as
further amended by the Company’s registration statement on Form S-1
MEF (File No. 333-256111) filed with the SEC and effective as of
the date of filing. A final prospectus relating to the offering was
filed with the SEC on May 17, 2021 and is available on the SEC’s
website at http://www.sec.gov. Electronic copies of the final
prospectus relating to this offering may be obtained from Maxim
Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at
(212) 895-3745.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Data Storage
Corporation
The Company delivers and supports a broad range
of premium technology solutions focusing on IaaS, data storage
protection and IT management. Clients look to DSC to ensure
disaster recovery, business continuity, enhance security, and to
meet increasing industry, state and federal regulations. The
Company markets to businesses, government, education and the
healthcare industry by leveraging leading technologies. Through its
business units, the Company provides IaaS, SaaS, DRaaS, VoIP, IBM
Power systems and storage hardware with managed IT services. For
more information, please
visit http://www.DataStorageCorp.com.
Safe Harbor Provision
This press release contains "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, that are intended to be covered by
the safe harbor created thereby. Forward-looking statements
generally can be identified by the use of forward-looking
terminology such as "may," "will," "expects," "intends," "plans,"
"projects," "estimates," "anticipates," or "believes" or the
negative thereof or any variation thereon or similar terminology or
expressions. These forward-looking statements are based upon
current estimates and assumptions and include statements regarding
the intended use of proceeds and the pending acquisition of
Flagship. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from results proposed in such statements. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, it can provide no assurance that such
expectations will prove to have been correct. Important factors
that could cause actual results to differ materially from the
Company's expectations include, but are not limited to, market
conditions and the satisfaction of all conditions to, and the
closing of, the offering, as well as those risk factors set
forth in the Company's Registration Statement on Form S-1 (File No.
333-253056), as amended, and its other filings and submissions with
the SEC. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made.
Except as required by law, the Company assumes no obligation to
update or revise any forward-looking statements.
Contact:Crescendo Communications,
LLC212-671-1020DTST@crescendo-ir.com
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