Data443 Risk Mitigation, Inc. announced that it has entered into a securities purchase agreement to issue secured convertible notes 1 in the principal amount of $812,500 and pre-funded warrants 1 and has entered into a second securities purchase agreement to issue secured convertible notes 2 in the principal amount of $718,750 and pre-funded warrants 2 on June 30, 2023. The 1 notes are convertible into shares of the company?s common stock, par value $0.01 per share, at a conversion price per share of $0.005. The 1 notes were issued with an original issue discount of 30.00%, do not bear interest, and mature twelve months from the date of issuance.

The 2 notes are convertible into common stock, at a conversion price per share of $0.005, subject to adjustment under certain circumstances described in the notes. The notes were issued with an original issue discount of 15.00%, bear interest at a rate of 12%, and mature twelve months from the date of issuance. The warrants have an exercise price of $0.001 and are exercisable at any time, and entitle investor to purchase 162,500,000 shares of common stock into which the note may be converted, subject to adjustment under certain circumstances and have an exercise price of $0.005, which was pre-funded to the company.

The Notes and Warrants to be sold are not registered under the Securities Act of 1933, as amended or the securities laws of any state, and were offered and sold in reliance upon the exemption from registration afforded by Section 4(a)(2) under the Securities Act and Regulation D promulgated thereunder.