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Cloudastructure, Inc. (CSAI), a Delaware-based firm specializing in computer programming and data processing with a market capitalization of $64.79 million, has entered into a Waiver Agreement with Streeterville Capital, LLC, modifying certain terms of their previous securities purchase agreements. According to InvestingPro data, the company has experienced significant market volatility, with its stock currently trading near its 52-week low. The agreement, effective today, alters the conditions related to the conversion price of Cloudastructure’s Series 1 Convertible Preferred Stock.
Previously, Cloudastructure and Streeterville had an arrangement where Cloudastructure issued Series 1 Stock that could be converted into shares of its Class A common stock, with the conversion price contingent upon the occurrence of a Trigger Event as defined in the Certificate of Designations. However, as of today, the two parties have agreed to waive the Trigger Event requirement for the conversion price adjustment, which will now be set to the lesser of the Fixed Conversion Price and the Market Price. This development comes as the company shows mixed operational results, with InvestingPro analysis revealing an impressive revenue growth of 85% but maintaining a modest gross profit margin of ~14%.
In exchange for this concession, Streeterville Capital has agreed to forego the increase in Stated Value that would have been applied if a Trigger Event had taken place. This modification is outlined in the Waiver Agreement, which was signed by both parties today, and is now part of their ongoing financial relationship.
The Series 1 Convertible Preferred Stock was initially created under a Securities Purchase Agreement dated November 25, 2024, and subsequently amended on January 16, 2025, January 29, 2025, and February 14, 2025. The Certificate of Designations for the stock was filed with the State of Delaware on January 28, 2025.
Cloudastructure trades on the NASDAQ Capital Market under the ticker symbol CSAI. The company is recognized as an emerging growth company and is subject to the reporting requirements of the Securities Exchange Act of 1934. This news is based on the latest 8-K filing with the Securities and Exchange Commission. InvestingPro analysis indicates the company currently maintains a weak financial health score, with additional insights and detailed financial metrics available to subscribers.
In other recent news, Cloudastructure has announced securing a $4.5 million investment aimed at advancing its AI security solutions and market expansion. This funding comes through the issuance of Series 2 Convertible Preferred Stock and reflects investor confidence in the company’s strategic direction. Additionally, Cloudastructure has formed a strategic partnership to host its AI infrastructure at a renewable energy data center in Montana, significantly reducing operational costs compared to its previous Silicon Valley data center. This move supports the company’s growth strategy by leveraging cost-efficient power sourcing from hydroelectric energy.
Moreover, Cloudastructure has secured a deal to enhance security for two large multifamily properties in the DC Metro area. The deployment of its surveillance technology addresses increasing security needs and compliance requirements in the region. The company’s platform offers cloud video surveillance with proprietary AI/ML analytics and remote guarding solutions, aiming to reduce the total cost of ownership for enterprises. These recent developments highlight Cloudastructure’s commitment to expanding its market presence and improving operational efficiencies.
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