Benzinga | Oct 23, 2020 08:33AM EDT

Datasea Enters Into Common Stock Purchase Agreement With Triton Funds; Triton Is Obligated To Purchase Up To $2M Of The Company's Common Stock From Time-To-Time Through December 31, 2020.

NEW YORK, Oct. 23, 2020 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a technology company engaged in providing smart security solutions and developing education-related technologies in China, has entered into a common stock purchase agreement ("Agreement") with investment firm Triton Funds LP ("Triton"), where Triton is obligated to purchase up to $2.0 million of the Company's common stock from time-to-time through December 31, 2020.

As part of the Agreement, each time Datasea wishes to sell its common stock, it will first provide Triton with a purchase notice, which sets forth the total number of common stock the Company intends to sell. The purchase price for Triton would then be 90% of the lowest closing price of Datasea's common stock during the five business days prior to closing.

The total number of shares to be purchased under the Agreement will not exceed 523,596 shares, or 2.5% of the Company's outstanding shares of common stock, subject to the 9.9% beneficial ownership limitation of the Company's shares of common stock held by Triton, to the $2.0 million cap under the Agreement, and to a valuation cap for the Company of $80 million. Datasea is also precluded from submitting a purchase notice to Triton in the event the closing price of $1.65 per share as reported on the Nasdaq Stock Market.

Datasea intends to use any net proceeds from the sale of its common stock to Triton for general corporate and working capital purposes.

The shares are offered pursuant to an effective "shelf" registration statement on Form S-3, as amended (SEC No. 333-239183) which was filed with, and subsequently was declared effective by the U.S. Securities and Exchange Commission (the "SEC") on June 25, 2020. The offering will be made only by means of a prospectus supplement, which together with accompanying base prospectus, will be filed with the Securities and Exchange Commission and available on the SEC's website at http://www.sec.gov.