Castellum, Inc. Announces Accretive Restructuring and $1.5 Million Investment for Uplisting from Crom Cortana Fund LLC

Rhea-AI Summary

Castellum, Inc. (OTC: ONOV) secured $1.5 million investment from Crom Cortana Fund LLC to facilitate its uplisting to a national exchange. The company also restructured its Series A convertible preferred stock and paid down $500,000 in convertible debt, effectively reducing its fully diluted share count by over 8%. This capital will enable Castellum to hire advisors and complete necessary uplisting steps, with the CEO expressing optimism about increased liquidity and growth potential.

Positive

• Received $1.5 million investment for uplisting efforts.
• Reduced fully diluted share count by over 8%.
• Paid down $500,000 of convertible debt to enhance capitalization.

Negative

• None.

POTOMAC, Md., April 07, 2022 (GLOBE NEWSWIRE) -- Castellum, Inc. (OTC: ONOV) announces that it has received $1.5 million in new investment capital from Crom Cortana Fund LLC to finance the uplisting of Castellum's common stock to a listed exchange later this year. Additionally, Castellum restructured its Series A convertible preferred stock and paid down $500,000 of its convertible debt to enhance the Company's capitalization table ahead of the expected uplisting. The net effect of the transactions reduces the fully diluted share count of the Company by more than 8% while giving the Company the capital necessary to hire outside advisors and start to take the requisite steps for the uplisting.

"The transactions we announced today are powerful for our shareholders. They both provide Castellum with the capital needed to pursue an uplisting while restructuring Castellum's capitalization table in an accretive way," said Mark Fuller, President, and CEO of Castellum. "We are excited to be working with Crom Cortana Fund LLC, a capital source backed by successful entrepreneurs who understand what it means to grow a company. The uplisting will provide greater liquidity for our stock and further enhance the aggressive pursuit of our growth objectives."

"We saw in Castellum an exciting opportunity to help restructure and recapitalize a company with a highly competent executive team proving its growth strategy for a listing on a national exchange," said Liam Sherif, General Partner at Crom Cortana Fund. "Both the combination of reliable revenues derived from long term government contracts and exposure to secular tailwinds that encourage U.S. government investment into cybersecurity efforts were major factors in our investment thesis."

About Castellum, Inc.:

Castellum, Inc. (OTC: ONOV) is a technology service and solutions company executing strategic acquisitions in Cyber Security, Information Technology, Information Warfare, Electronic Warfare, Systems Engineering, Software Engineering, and Software Development.

About Crom Cortana Fund:

Crom Cortana Fund is a New York City-based investment firm focused on special situation investment opportunities across the growth spectrum. Managed by Liam Sherif and John Chen, the firm is advised by several successful public market entrepreneurs who lend a unique combination of operating and venture capital experience that enable Crom to be a value-add investor. Notable investors include Raghib Hussain and Tarek Sherif. Crom invests in companies with high-quality management teams with proven operating capabilities seeking to establish themselves as leading competitors in their field.

Forward-Looking Statements:

This release contains forward-looking statements within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date. In evaluating such statements, prospective investors should carefully review various risks and uncertainties identified in this release and matters disclosed at www.otcmarkets.com. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

Contact:

Mark Fuller, President & CEO

info@castellumus.com

301-961-4895

A graphic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fcf99310-7ec1-4366-9f26-fa840a34fbaf

FAQ

What is Castellum, Inc. (ONOV) planning with the recent $1.5 million investment?

Castellum, Inc. is using the $1.5 million investment to finance its uplisting to a national exchange.

How does Castellum's restructuring of its Series A convertible preferred stock impact shareholders?

The restructuring and repayment of $500,000 in convertible debt reduce the fully diluted share count, potentially benefiting shareholders.

What steps will Castellum take following the recent investment?

The company plans to hire outside advisors and initiate the necessary steps for its uplisting to a national exchange.

How will the uplisting affect Castellum, Inc.'s stock liquidity?

The uplisting is expected to provide greater liquidity for Castellum's stock.