Data443 Risk Mitigation Inc (ATDS)

[Bubae]

Yes Mr. Peeteman, there are a number of problems with the NASDAQ angle. It does serve the purpose of justifying the huge reverse split. It is as important to convince traders to hold as it is to lure in new buyers as well.

One interesting aspect is the corporate governance requirement. Jason, as stated in a filing "Jason Remillard is our Chief Executive Officer and sole director. Through his ownership of Series A Preferred Shares, Mr. Remillard has voting control over all matters to be submitted to a vote of our shareholders." This simply will not due for qualifying for the NASDAQ uplist. Could it be that Jason wants to unload his substantial ownership of this company and cash out. The perfect excuse is the NASDAQ corporate governance angle in my opinion. What vote is necessary to get this done when he holds all the cards? His vote is the only one that counted when he unloaded his "ClassiDocs" on the shareholders that he fleeced with the last reverse split. The post split period now would be a great time to unload his share of this company on the new group of shareholders with the new dilution that is inevitable. The voting power of his class "A" preferred shares is 15,000 to 1.

"Jason Remillard is our Chief Executive Officer and sole director. Through his ownership of Series A Preferred Shares, Mr. Remillard has voting control over all matters to be submitted to a vote of our shareholders.

"During the nine months ended September 30, 2020 we issued to our CEO a total of 148,666 shares of Series A preferred stock."


https://sec.report/Document/0001493152-20-021394/

ClassiDocs Deal

https://sec.report/Document/0001493152-20-024298/

"In January 2018 the Company acquired substantially all of the assets of Myriad Software Productions, LLC, which is owned 100% by Mr. Remillard. Those assets were comprised of the software program known as ClassiDocs, and all intellectual property and goodwill associated therewith. This acquisition changed the Company’s status to no longer being a “shell” under applicable securities rules. In consideration for the acquisition, the Company agreed to a purchase price of $1,500,000 comprised of (i) $50,000 paid at closing; (ii) $250,000 in the form of our promissory note; and, (iii) $1,200,000 in shares of our common stock, valued as of the closing, which equated to 1,200,000,000 shares of our common stock (pre-reverse split). The shares have not yet been issued and are not included as part of the issued and outstanding shares of the Company. However, these shares have been recorded as additional paid in capital within our consolidated financial statements for the period ending 30 June 2018."