Data443 Risk Mitigation Inc (ATDS)

[Bubae]

New 8K out with more dilution on the way. Fixed price is .50, however there are nice price protections in place. Refer to the "Subsequent Equity Sales" section in the note and understand that this appears to be a floorless note. Looks like Jason is sacking a new group of shareholders. Surprise!, Surprise! Surprise! as Gomer would say.

8K Filing
https://www.otcmarkets.com/filing/html?id=16253877&guid=PJP-kaZlBdQtB3h

On December 7, 2022, Data443 Risk Mitigation, Inc....

... Pursuant to the Securities Purchase Agreement, the Company sold, and the Investor purchased, $750,000.00 in principal amount of unsecured convertible notes (the “Notes”) and warrants (the “Warrants”)....

...The Notes are convertible into shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), at a conversion price per share of $0.50, subject to adjustment under certain circumstances described in the Notes....



The Note
https://www.otcmarkets.com/filing/html?id=16253877&guid=PJP-kaZlBdQtB3h#ex4-1_htm

Upon the execution and delivery of this Note, the sum of $600,000.00 shall be remitted and delivered to, or on behalf of, the Company, and $150,000.00 shall be retained by the Holder through an OID (original issue discount) (the “OID”) to cover the Holder’s accounting fees, monitoring, and other non-legal transactional costs incurred in connection with the purchase and sale of this Note.


c) Subsequent Equity Sales.

....any shares of Common Stock and/or Common Stock Equivalents (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any securities issued or sold or deemed to have been issued or sold solely in connection with an Exempt Issuance) for a consideration per share (the “New Issuance Price”)less than a price equal to the Conversion Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Conversion Price then in effect is referred to herein as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance Price;...