CISO Global Announces Strategic Investment to Accelerate Growth and Profitability

Rhea-AI Summary

CISO Global has secured a strategic investment of $6.5 million from investors led by Target Capital through a convertible note. The funding will primarily be used to reduce short-term debt and strengthen the company's balance sheet, advancing its path to profitability.

The investment demonstrates Target Capital's confidence in CISO Global's business model and long-term vision. The company plans to enhance financial flexibility, improve operating cash flow, and invest in scaling software sales to existing clients and channel partners.

RBW Capital Partners , through Dominari Securities , acted as the exclusive placement agent for the offering.

Positive

• Secured $6.5 million strategic investment
• Debt reduction to improve balance sheet
• Enhanced financial flexibility and cash flow

Negative

• Current unprofitability requiring external funding
• Existing short-term debt burden
• Potential shareholder dilution through convertible note

Insights

Financial Analyst

This $6.5 million strategic investment via convertible note represents a significant development for CISO Global, particularly given its current market cap of just $19.3 million. The deal's primary focus on debt reduction and balance sheet improvement addresses important financial concerns. The company's strategy to reinvest in software sales through existing channels is capital-efficient, potentially leading to higher margins and better cash flow. Target Capital's involvement adds credibility, though investors should note that convertible notes can lead to future dilution. The emphasis on reaching profitability suggests current operations are cash flow negative, making this capital injection vital for operational sustainability. The investment terms and conversion details would be important for fully assessing the deal's impact on shareholder value.

Tech Industry Analyst

The strategic focus on expanding software sales within the existing client base indicates a shift toward a more scalable, higher-margin business model in the cybersecurity sector. This approach is particularly shrewd as it leverages established relationships, reducing customer acquisition costs while potentially increasing lifetime value through software licensing. The cybersecurity market continues to grow and CISO's pivot to emphasize software solutions aligns with industry trends toward integrated, scalable security platforms. The investment will likely accelerate their software deployment capabilities, potentially improving competitive positioning in the managed cybersecurity and compliance space.

Scottsdale, Ariz., Dec. 16, 2024 (GLOBE NEWSWIRE) -- CISO Global, Inc. (NASDAQ: CISO), an industry leader in proprietary software, managed cybersecurity, and compliance, today announced that it has received a strategic investment of $6,500,000 from Investors, led by Target Capital, in the form of a convertible note. The primary use of proceeds from this investment will be to pay down short-term debt and improve the company’s balance sheet, accelerating its path to profitability.

The strategic investment underscores Target Capital’s confidence in CISO Global’s business model and long-term vision. By reducing short-term liabilities, the company will enhance its financial flexibility, free up cash flow, and invest in scaling its software sales to existing clients and channel partners.

“This investment marks a pivotal step in CISO Global’s journey toward sustained profitability,” said David Jemmett, CEO of CISO Global. “By strengthening our balance sheet and reducing debt, we are well-positioned to channel resources into high-impact growth initiatives. Our focus on expanding software sales within our established client base and partner network will drive revenue growth and operational efficiency.”

“We are extremely excited to work with David Jemmett and the CISO team to help unlock the true value of the business,” said Dmitriy Shapiro of Target Capital. “We view CISO as an extremely undervalued business and believe this investment will help the company showcase its ability to generate profit.”

The proceeds from this transaction will also allow CISO Global to improve its operating cash flow and accelerate the deployment of its software solutions, reinforcing its commitment to delivering innovative services to its customers.

RBW Capital Partners LLC, offering all securities through Dominari Securities LLC, served as the exclusive placement agent for the offering.

About CISO Global, Inc.

CISO Global, Inc. is a premier cybersecurity firm specializing in comprehensive security solutions designed to protect organizations from the latest cyber threats. Leveraging cutting-edge technology and industry expertise, CISO Global offers tailored services to ensure the security and compliance of its clients' digital assets.

For more information, please visit www.cisoglobal.com.

Safe Harbor Statement

This news release contains certain statements that may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include, among others, our belief that we are an industry leader in proprietary software, managed cybersecurity, and compliance; our belief that the investment from Target Capital (“Target”) will be used to pay short-term debt and will improve our balance sheet; our belief that this funding confirms Target’s confidence in our corporate vision; our belief that the funding will lead to sustained profitability; and our belief that we provide comprehensive cybersecurity solutions to our clients. These statements are often, but not always, made through the use of words or phrases such as "believes," "expects," "anticipates," "intends," "estimates," “predict,” "plan," “project,” “continuing,” “ongoing,” “potential,” “opportunity,” "will," "may," "look forward," "intend," "guidance," "future" or similar words or phrases. These statements reflect our current views, expectations, and beliefs concerning future events and are subject to substantial risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. These risks may be detailed from time to time in the reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, we assume no obligation and do not intend to update any forward-looking statements, whether as a result of new information, future developments, or otherwise.

For Media Inquiries:
Hilary Meyers
hilary.meyers@ciso.inc
(480) 389-3444

FAQ

How much strategic investment did CISO Global receive in December 2024?

CISO Global received a strategic investment of $6.5 million from investors led by Target Capital in December 2024.

What is the primary use of CISO Global's $6.5M investment?

The primary use of the $6.5 million investment will be to pay down short-term debt and improve the company's balance sheet.

Who led the strategic investment in CISO Global?

Target Capital led the strategic investment in CISO Global.

What type of financial instrument was used for CISO Global's investment?

The investment was made in the form of a convertible note.

How will CISO Global use the investment to drive growth?

CISO Global will use the investment to enhance financial flexibility, free up cash flow, and invest in scaling software sales to existing clients and channel partners.