CISO Global Secures $15 Million for Growth Initiatives Ahead
Securing Growth: CISO Global's New Financing Strategy
CISO Global, a notable player in AI-driven cybersecurity solutions, has taken a significant step toward expansion by securing a $15 million convertible preferred equity facility. This strategic move, facilitated through a private arrangement with B. Riley Securities, is aimed explicitly at funding initiatives that align with the company's growth ambition.
Details of the Convertible Preferred Equity Facility
The newly introduced facility allows CISO to sell shares of convertible preferred stock at a value of $1,000 each. Although this stock bears no preferred return or dividends, it is projected to be sold at a four percent discount, paving the way for enhanced financial flexibility. This flexible facility spans a term of 18 months, allowing CISO to draw funds as needed, starting with an initial increment of $2.3 million, followed by weekly increments of $500,000. Importantly, CISO retains full control over the draw timing and amounts, ensuring a tailored approach to its funding strategy.
Strategic Use of Funds
The company intends to use the proceeds from this funding source to enhance its cybersecurity software business, particularly focusing on the insurance sector. By expanding its offerings through a strategic relationship with CAGI, CISO Global is optimizing its market reach and ensuring comprehensive solutions for its clients.
Understanding the Conversion Rights and Financial Protections
One noteworthy feature of this equity facility is the conversion option tied to the preferred stock. Shareholders will have the opportunity to convert their preferred shares into common stock once certain registration conditions are fulfilled. This conversion is subject to a price adjustment mechanism, ensuring it remains attractive to investors while safeguarding the company’s interests by setting a minimum conversion price.
Market Compliance and Growth Potential
The structured facility includes safeguards that align with NASDAQ’s Listing Rules, including beneficial ownership caps, which prevent any single entity from dominating the ownership structure. CISO's proactive measures ensure compliance with regulatory frameworks, positioning the company for sustainable growth while adhering to market standards.
Statements from CISO Global Leadership
David Jemmett, the CEO of CISO Global, expressed enthusiasm regarding this financing initiative, noting that it plays a crucial role in the company's growth trajectory. With a longstanding partnership with B. Riley, Jemmett highlighted the cooperative spirit that underpins this funding, aligning with the company's strategic vision of robust expansion.
Reflections from the Financial Leadership
Echoing these sentiments, CFO Deb Smith emphasized the strengthened financial position attained through this facility. This newfound financial strength is set to empower CISO Global to push forward its operational and strategic goals without the weight of immediate financial pressures.
A Forward-Looking Approach
CISO Global’s recent transactions, including the preferred equity facility, emphasize the company's intent to enhance its balance sheet and maintain liquidity for strategic opportunities. As the cybersecurity landscape evolves, CISO's agility and investment in compliance-focused solutions are essential for sustaining its competitive advantage.
Support from Legal Representation
Through the aid of experienced legal counsel, CISO was able to navigate the complexities of compliance and structuring necessary to execute this funding strategy effectively. Collaboration with firms such as Greenberg Traurig reinforces the company's commitment to legal diligence in all financial dealings.
About CISO Global
CISO Global, Inc. (NASDAQ: CISO) is at the forefront of AI-driven cybersecurity, managed cybersecurity, and compliance services. It provides cutting-edge solutions designed to protect businesses and government entities from emerging cyber threats and ensures they meet their compliance obligations. For those wanting to stay updated, CISO Global offers opportunities to join their investor relations mailing list for the latest news.
Frequently Asked Questions
What is the purpose of CISO Global's recent equity facility?
The facility aims to provide funding for the expansion of CISO's cybersecurity initiatives, particularly within the insurance sector.
How much funding is CISO Global securing through this facility?
CISO Global has arranged for a total of $15 million through this convertible preferred equity facility.
What are the terms of the convertible preferred stock?
The stock offers conversion options based on market performance and retains certain protective measures for shareholders.
Who acted as the placement agent for this financing?
B. Riley Securities acted as the Sole Placement Agent to facilitate this financing arrangement for CISO Global.
How does this financing position CISO for future growth?
The arrangement enhances CISO's financial flexibility, enabling strategic investments in technology and operational capabilities crucial for future growth.
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