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MELVILLE, N.Y. - Data Storage Corporation (NASDAQ:DTST), a technology company with a market capitalization of approximately $30 million and strong balance sheet fundamentals according to InvestingPro data, announced Monday it has completed the repurchase of substantially all outstanding warrants originally issued in July 2021, paying $2,049,388 to repurchase warrants exercisable for 858,750 shares of common stock.
The repurchase was conducted under the fundamental transaction provision of the July 2021 Warrants, triggered by the company's sale of its CloudFirst subsidiary on September 11, 2025. The repurchase period closed on October 13, 2025, with all related transactions now settled.
Following the completion, only 172,500 warrants remain outstanding, which the company said simplifies its capital structure and eliminates a potential source of future dilution.
"This transaction improves our capital structure and aligns with our goal of delivering long-term shareholder value," said Chuck Piluso, Chief Executive Officer of Data Storage Corporation, according to the company's press release.
The company also announced plans to commence a tender offer in the near future, with details regarding timing, terms, and instructions for shareholders to be announced once finalized.
Data Storage Corporation indicated that following the tender offer, it plans to invest in and support businesses in GPU Infrastructure-as-a-Service, AI-driven software applications, cybersecurity, and voice/data telecommunications, with a mission to build sustainable, recurring revenue streams while maintaining financial discipline.
In other recent news, Data Storage Corp reported its second-quarter 2025 earnings, which showed a larger-than-expected loss and a revenue shortfall. The company posted an earnings per share of -$0.10, missing the forecasted -$0.01, and reported revenues of $5.15 million, below the expected $6.2 million. Additionally, Data Storage Corp completed the sale of its CloudFirst business to Performive for approximately $40 million in gross proceeds, resulting in an estimated $24 million in net proceeds. Following this major divestiture, Maxim Group downgraded the company's stock rating from Buy to Hold, citing uncertainty around the company's strategic direction. Data Storage Corp also repurchased warrants for $2.05 million after the sale of its cloud solutions business. The company issued supplemental disclosures related to the divestiture, responding to shareholder requests for additional financial information. These recent developments highlight significant changes and challenges for Data Storage Corp as it navigates its strategic pivot.
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