If a company manages to secure further substantial funding, then it is almost always regarded as a major new development and hence, last week Safe-T Group (NASDAQ:SFET) was in a significant focus. Considering the latest capital raise related development it is likely that the stock is going to come into focus among investors this week. The cybersecurity and privacy solutions firm was in the news last Wednesday, August 10 when it announced that it had been successful in raising as much as $4 million in fresh funding, which is going to be deployed toward the development of its customer acquisition initiative and the growth of its consumer privacy solutions business. In this regard, it is perhaps more important to keep in mind that the funding did not lead to any dilution of the Safe-T Group stock.
Safe-T Group is going to be provided with as much as $2 million in the form of a cash commitment upfront by O.R.B. Springs. The rest of the $2 million commitment is going to be disbursed to the company once it manages to hit certain milestones and targets. The funding is going to make to the company in installments of cash payments up until July next year. The money is going to be allocated towards the customer acquisition initiative related to the consumer privacy solutions products offered by Safe-T Group.
It is interesting to note that O.R.B. Springs is actually controlled by the former Chief Executive Officer and founder of the Safe-T Group’ enterprise privacy business Barak Avitbul. The installments are going to be repaid by the company within two years by the company. As soon as the amounts have been repaid in full, O.R.B. Springs and Safe-T Group are going to share the revenues derived from the consumer privacy solution business equally for five years.