CISO Global eliminates $9 million in debt, secures $15 million funding

SCOTTSDALE, AZ - CISO Global (NASDAQ:CISO), a provider of cybersecurity software and compliance services with a market capitalization of $35 million, announced Wednesday it has strengthened its balance sheet by converting over $9 million of investor debt into Preferred A shares with no associated warrants. According to InvestingPro data, this move comes as the company faces challenges with short-term obligations exceeding liquid assets, reflected in a current ratio of 0.19.

The company also recently secured a financing agreement with B. Riley that provides access to up to $15 million in potential growth capital through the sale of convertible Preferred B shares, also without warrants. CISO Global maintains discretion over whether to issue these shares and intends to do so only when growth opportunities warrant the investment. The company generated revenue of $28.79 million in the last twelve months, with a gross profit margin of 21.83%.

"After a lot of hard work by our entire CISO Global team, I am pleased to report that our balance sheet is now strong," said David Jemmett, CEO of CISO Global.

The debt conversion involved the company’s last remaining investor debt, which was exchanged into equity now held by two long-term supporters of the company.

CISO Global serves over 600 clients with its cybersecurity services and is marketing its proprietary software solutions to this existing customer base. The company has also established partnerships with insurance providers to integrate its security offerings within financial assurance solutions. InvestingPro analysis reveals that while the stock has shown strong momentum with a 151% return over the past six months, the company’s overall financial health score remains weak. Subscribers can access 11 additional ProTips and comprehensive financial metrics at InvestingPro.

Kyle Young, COO of CISO Global, noted, "We continue to see a strong sales pipeline from business owners seeking to reduce their cybersecurity risk through innovative financial-backed models."

Headquartered in Scottsdale, Arizona, CISO Global focuses on providing cybersecurity solutions and ensuring compliance obligations are met for businesses and government organizations.

The information in this article is based on a company press release statement.

In other recent news, CISO Global has announced a significant financing arrangement that could impact its future operations. The cybersecurity company has secured a $15 million convertible preferred stock facility through a private financing deal with B. Riley Securities Holdings, Inc. This arrangement provides CISO Global with the flexibility to draw funds over an 18-month period, beginning with an initial increment of $2.3 million. Subsequently, the company can access up to $500,000 weekly, contingent upon meeting certain conditions. The convertible preferred stock associated with this facility has a stated value of $1,000 per share and will be sold at a 4% original issue discount. These developments are crucial as they provide CISO Global with additional capital to support its business operations and strategic initiatives.

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