EXCLUSIVE: Safe-T Bags Funding Up To $4M To Drive Consumer Privacy Business

EXCLUSIVE: Safe-T Bags Funding Up To $4M To Drive Consumer Privacy Business

Safe-T Group Ltd SFET has secured up to $4 million in funding.

What Happened? Safe-T Group, a global provider of cybersecurity and privacy solutions, consummated a non-dilutive strategic funding agreement of up to $4 million to support the further growth of its consumer privacy solutions and its customer acquisition program. 

Under the terms of the agreement, O.R.B. Spring Ltd will provide Safe-T with an upfront cash commitment of $2 million with an additional $2 million available subject to the achievement of certain milestones. 

Why Does It Matter? The funding, made through a series of cash installments until July 2023, will be explicitly allocated towards Safe-T’s customer acquisition program for one of its consumer privacy solutions. 

Barak Avitbul, an accomplished technology industry entrepreneur and leader, controls O.R.B. 

Safe-T will repay the funding using a revenue share model based on sales generated only from customers of the new consumer privacy solution acquired with each funding installment.

Safe-T needs to repay each such funding installment within two years, and if the repayments do not reach 100% of the installments, then Safe-T will cover the remaining amounts in cash or shares.

In addition, the investor can make additional investments in Safe-T through a series of warrants. 

The warrants will be exercisable at prices reflecting premiums ranging from approximately 130% to 300% of the current share price for up to 3 years from the vesting dates of the warrants. 

Upon potential exercise of all granted warrants, Safe-T may receive additional aggregate gross proceeds of between $2 million and $4 million. 

Safe-T obtained an irrevocable undertaking from both O.R.B and Mr. Avitbul, which includes a Grant of Irrevocable Proxy in connection to all voting rights attached to the shares of the company underlying certain warrants or any shares issued for repayment.  

Price Action: SFET shares traded higher by 11.60% at $0.58 in the premarket on the last check Wednesday.

Posted In: NewsPenny StocksFinancingMarket-Moving ExclusivesExclusivesTech

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