Technology Stocks

Data Storage Corp (NASDAQ: DTST) Announces an $8.3-Million Registered Direct Offering Price

Data Storage Corp (NASDAQ: DTST) is a top provider of diverse disaster recovery protection, cloud infrastructure solutions, and business continuity services. The company recently announced that it had agreed to securities purchase contracts with accredited institutional investors to acquire roughly $8.3 million common stock shares via a registered direct offering. It also wants to acquire purchase common stock shares in a private placed price under NASDAQ rules. The total consideration price of a single common stock share would be $6.05

According to the Purchase Agreement terms, Data Storage has agreed to let go of 1.375 million common stock shares and is looking to buy upwards to an aggregate of about 1,031,250 common stock shares. These will be exercisable immediately and are to expire on the 5th year anniversary of the date of issuance. Its exercise prices per share will come to $6.15.

Expected gross proceeds

Data Storage expected its gross proceeds from the concurrent private placement and registered direct offering to be roughly $8.3 million before placement agent’s fees are deducted as well as other offering expenses. The company expects to close the offering by around the 21st of July, 2021. Again, though, this will be subject to customary closing condition satisfaction.

The Maxim Group is playing the role of the solitary placement agent linked to this offering.

The common stock shares are all being offered per the shelf registration statement found on Form S 3 (File Number: 333-257812). This statement was something the SEC declared effective on the 16th of July, 2021. The warrants associated with the concurrent private placements and the share resulting from such a warrant were provided in Section 4 of the Securities Act (1933).

The press release can’t be considered a sale offer or a solicitation of a purchase offer. Therefore, there’ll also be no sales of such securities in a place that deems such a sale, solicitation, or offer to be unlawful. Instead, data Storage will file a prospectus statement linked to the common stock shares to the Securities Exchange Commission.

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