Toronto, Ontario--(Newsfile Corp. - March 15, 2017) - Data Deposit Box Inc. (CSE: DDB) (OTC Pink: DDBXF) (FSE: 2DD) (the "Company"), a global provider of cloud backup and recovery technology, is pleased to announce that it has closed a non-brokered private placement financing (the "Offering") of 9,072,726 units (each, a "Unit") at a price of $0.055 per Unit for gross proceeds of $498,999.93.
Each Unit consists of one Common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"), entitling the holder thereof to purchase one Common Share at a price of $0.07 per Common Share for a period of twenty-four (24) months from the date of issuance (the "Warrant Term"), provided, however, that should the closing price at which the Common Shares trade on the Canadian Securities Exchange (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) exceed $0.15 for 20 consecutive trading days at any time following the date that is four months and one day after the date of issuance, the Company may accelerate the Warrant Term ("Reduced Warrant Term") such that the Warrants shall expire on the date which is 30 calendar days following the date a press release is issued by the Company announcing the Reduced Warrant Term.
Proceeds raised from the Offering will be used for sales, marketing, and product development. All securities issued pursuant to the Offering are subject to a statutory hold period expiring on July 16, 2017 in accordance with applicable securities legislation.
A director of the Company (the "Related Party") participated in the Offering, which participation constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the Company nor, to the knowledge of the Company after reasonable inquiry, the Related Party has knowledge of any material information concerning the Company or its securities that has not been generally disclosed. The participants in the Offering and the extent of such participation were not finalized until shortly prior to the completion of the Offering. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the Offering pursuant to a material change report filed at least 21 days prior to the completion of the Offering.
Also, the Company announces that it has made a loan of $100,000 to an arm's length shareholder of the Company. The term of the loan is two years, at an interest rate of prime plus 0.5% payable annually, and the loan is secured against 1,818,181 Common Shares and 1,818,181 Warrants held by such shareholder.
About Data Deposit Box
Data Deposit Box, a pioneer of cloud backup and recovery technology, has set a new industry standard by providing the SMB market with the same level of security and protection that is available to large enterprises. Data Deposit Box patented backup technology, known for its Exabyte scalability, advanced data reduction capabilities and ease-of-use, has won prestigious industry awards and has been featured in many key industry publications.
Data Deposit Box technologies and solutions are currently used daily by over 200,000 customers, 1,000 resellers, 25 MSPs and private label partners for online backup and recovery, archiving, disaster readiness, secure file sharing and remote access.
Visit the Company's website at: www.datadepositbox.com
For More Information contact:
President & COO
Data Deposit Box Inc.
Email: [email protected]
This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.