Data Storage Corporation Announces Pricing of $8.3 Million Registered Direct Offering Priced At-The-Market
July 19 2021 - 8:00AM
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 it has entered into a securities purchase
agreement with certain accredited institutional investors (the
“Purchase Agreement”) to purchase approximately $8.3 million of its
shares of common stock in a registered direct offering and warrants
to purchase shares of its common stock in a concurrent private
placement priced at-the-market under Nasdaq rules. The combined
purchase price for one share of common stock and 0.75 warrants is
$6.04.
Pursuant to the terms of the Purchase Agreement,
DSC has agreed to sell 1,375,000 shares of its common stock and
warrants to purchase up to an aggregate of 1,031,250 shares of its
common stock. The warrants will be immediately exercisable, will
expire on the five year and six-month anniversary of the issuance
date and will have an exercise price of $6.15 per share.
DSC expects the gross proceeds from the
registered direct offering and concurrent private placement to be
approximately $8.3 million before deducting the placement agent’s
fees and other estimated offering expenses. The offering is
expected to close on or about July 21, 2021, subject to the
satisfaction of customary closing conditions.
Maxim Group LLC is acting as the sole placement
agent in connection with the offering.
The shares of common stock are being offered
pursuant to a shelf registration statement on Form S-3 (File No.
333-257812), which was declared effective by the United States
Securities and Exchange Commission (“SEC”) on July 16, 2021. The
warrants issued in the concurrent private placement and shares
issuable upon the exercise of such warrants were offered in a
private placement under Section 4(a)(2) of the Securities Act of
1933, as amended (the “Act”), and Rule 506(b) of Regulation D
promulgated thereunder and have not been registered under the Act
or applicable state securities laws.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor will there be
any sales of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such jurisdiction. A
prospectus supplement relating to the shares of common stock will
be filed by DSC with the SEC. When available, copies of the
prospectus supplement relating to the registered direct offering,
together with the accompanying prospectus, can be obtained at the
SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park
Avenue, New York, NY 10022, or by telephone at (212) 895-3745.
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 expected timing of the closing of the offering, the possible
offering of additional shares of common stock and/or warrants, and
the intended use of proceeds . 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 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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