Cloud Security Corp. (OTCBB: CLDS) said it has entered into a USD2m common stock purchase agreement with Kodiak Capital Group, LLC, a Newport Beach based institutional investor.
The company has agreed to file a registration statement with the US Securities & Exchange Commission (SEC) covering the shares that may be issued to Kodiak under the terms of the common stock purchase agreement. After the SEC has declared the registration statement related to the transaction effective, the company has the right at its sole discretion over a period of one year to sell up to USD2m of its common stock to Kodiak under the terms set forth in the agreement. Proceeds from this transaction will be used to fund the company´s expansion and for general corporate purposes.
Under the terms of the agreement, there are no upper limits to the price that Kodiak may pay to purchase the company´s common stock and this transaction in no way impedes or changes the company´s goals. The Kodiak financing commitment simply strengthens the company´s balance sheet and makes available an additional source of funding. Under the terms of the agreement, Kodiak has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the company´s shares of common stock.
Kodiak is an institutional investor headquartered in Newport Beach, CA. Kodiak makes private investments in public and private entities utilizing proprietary equity and debt instruments. For more information, visit www.kodiak-capital.us.
Cloud Security is an innovative cloud computing company that creates security, technology, and products. The company develops products in the remote-access computing sector including enhanced security connections. Cloud Security Corp. has developed patent-protected remote access security devices such as MyComputerKey. For more information, visit www.cloudsecuritycorporation.com.