LandStar, Inc. Announces Favorable Restructuring of Debt and Cancelation of Equity Line
RALEIGH, N.C., Oct. 04, 2018 (GLOBE NEWSWIRE) -- LandStar, Inc. ( OTCPK: LDSR ) (“LandStar” or the “Company”), the parent company of Data443™ Risk Mitigation, Inc. (“Data443”), a leading data security and privacy company, announced the completion of joint efforts with finance partner Blue Citi LLC (“Blue Citi”) resulting in the favorable restructuring of debt and financing agreements..
Effective September 30th 2018 the Company and Blue Citi have agreed as follows:
-- Blue Citi has waived the $100,000 commitment fee (which was to be paid in shares of common stock) related to the Equity Purchase Agreement signed in February, 2018 (the “Equity Line”). -- Mutually agreed to cancel the Equity Line. -- Blue Citi has restructured all of the convertible debt issued to it by the Company in 2018 ($829,680), (i) reducing the conversion discount from 25% down to 10%; (ii) extending the maturity date of all amounts to March 30, 2020; and, (iii) waiving all known and unknown breaches under the prior notes. -- Mutually agreed to support each other to engage additional funding partners in furtherance of the Data443 business plan, as stated in our recent investor conference call.
The above agreements will result in a very large reduction of the derivative liability reported on the Company’s balance sheet for the period ended June 30, 2018. The Company will also benefit from a decrease in dilution of its shareholders.
Jason Remillard, Chief Executive Officer of LandStar and founder of Data443, stated: “When we entered into our Equity Line with Blue Citi in February 2018, we were in a much different position as a company. As we mature and demonstrate execution on our partner and product plan, we are afforded more favorable opportunities. Our strategy is continuing to gain validation with our clients, partners and the investment community. We continue to execute to take advantage of our opportunity to penetrate what’s become an emerging market in data security and privacy.”
“Blue Citi has been a great financial partner to the Company – they understand our business and our data privacy and cyber security strategy. Together, we continue to work towards more shareholder-friendly financing options, which may involve some of our current banking and financial contacts. The benefits of achieving better terms are clear as the opportunities are significant – providing us the opportunity to grow through further accretive acquisitions, which only strengthen Data443’s service offering for enterprises around the world,” concluded Mr. Remillard.
About LandStar, Inc.LandStar, Inc. ( OTCPK: LDSR ), through its wholly owned subsidiary Data443™ Risk Mitigation, Inc., enables secure data – across local devices, network, cloud, and databases – at rest and in flight. ClassiDocs™, the company’s award-winning data classification and governance technology, provides GDPR compliance and DSAR management coupled with DLP, CASB, SIEM, and cloud solutions to provide user-enabled, governance-enabled, up-to-date security for every data point, every time. The WordPress-based GDPR Framework enables organizations of all sizes to comply with the GDPR and other privacy frameworks. ClassiDocs™ for Blockchain provides an active implementation for blockchain transactions from inadvertent disclosure and data leaks. For more information, please visit www.data443.com.
Forward-Looking Statements The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements. The statements in this press release that are not historical statements, including statements regarding LandStar’s plans, objectives, future opportunities for LandStar’s services, future financial performance and operating results and any other statements regarding LandStar’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond LandStar’s control, which could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to the operations of LandStar; results of litigation, settlements and investigations; actions by third parties, including governmental agencies; volatility in customer spending; global economic conditions; ability to hire and retain personnel; loss of, or reduction in business with, key customers; difficulty with growth and in integrating acquisitions; product liability; cybersecurity risk; and, anti-takeover measures in our charter documents.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained, from time-to-time, in LandStar’s filings with the Securities and Exchange Commission and postings on the OTC Markets news and information website. LandStar undertakes no obligation to publicly update or revise any forward-looking statement.
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