root9B Holdings Closes Secured Note Financing

COLORADO SPRINGS, Colo., March 27, 2017 /PRNewswire/ -- root9B Holdings, Inc. (Nasdaq: RTNB) ("RTNB") today announced the closing of the final tranche of its previously disclosed private placement financing consisting of secured convertible promissory notes and common stock purchase warrants for net proceeds of $2.25 million.  The financing, which completed its initial closing in September 2016, generated net proceeds of $8.8 million over a seven-month period. 

Participants included new and existing equity investors and noteholders.      

"The closing of this financing supports our ongoing initiatives to re-focus RTNB's business to that of a pure-play cybersecurity company based on the operations of our wholly-owned subsidiary, root9B, LLC," said Joseph J. Grano, Chairman and CEO of RTNB.  "This growth capital will allow us to continue to expand root9B's world-class team of cyber security experts, enhance its multi-platform products and services, and fund ongoing business development activities." 

"We are proud that almost 90% of this funding came from existing investors, including our two largest institutional holders," said Dan Wachtler, President and COO of RTNB. "We view their support as a validation of our strategy and recognition of our successes to date in executing against this plan."

The secured convertible promissory notes have a three-year term after issuance and each note accrues interest at a rate of 10% per annum.  The warrants to purchase approximately 439,000 shares of RTNB common stock have a term of five years with an exercise price of $10.00 per share. 

Additional information regarding this financing, the terms of the secured convertible promissory notes, and the common stock purchase warrants may be found in RTNB's filings with the Securities and Exchange Commission (www.sec.gov).  

About root9B

Ranked as the #1 Cybersecurity company for five consecutive quarters by Cybersecurity Ventures, root9B stands in defiance of the unwanted human presence within our clients' networks by attacking the root of the problem—the adversary's ability to gain entry and remain undetected. root9B's application of advanced technology developed through cutting-edge R&D and engineering and refined through relevant, hands-on training is revolutionary. root9B combines next generation technology, tactics development, specialty tools, and deep mission experience. root9B personnel leverage their extensive backgrounds in the U.S. Intelligence Community to conduct advanced vulnerability analysis, penetration testing, digital forensics, incident response, Industrial Control System (ICS) security, and Active Adversary Pursuit (HUNT) engagements on networks worldwide. For more information, visit www.root9B.com. 

About root9B Holdings, Inc.

root9B Holdings is a leading provider of Cybersecurity and Regulatory Risk Mitigation Services. Through its wholly owned subsidiaries root9B and IPSA International, the Company delivers results that improve productivity, mitigate risk and maximize profits. Its clients range in size from Fortune 100 companies to mid-sized and owner-managed businesses across a broad range of industries including local, state and government agencies. For more information, visit www.root9bholdings.com

Forward Looking Statements

Certain information contained in this press release may include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and reorganization efforts. These statements are based on RTNB's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of RTNB's business. These risks, uncertainties and contingencies are indicated from time to time in root9B Technologies filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that RTNB's financial results in any particular period may not be indicative of future results. RTNB is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

SOURCE root9B Holdings, Inc.

Related Links

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