Data Storage Corp. Secures $20 Million in Financing

Data Storage Corporation (DSC), a cloud storage and cloud computing company focusing on data protection and business continuity solutions, has signed a $20 million equity line agreement with Southridge Partners II, an institutional investor based in Ridgefield, CT.

This funding will enable DSC to further accelerate its technology development and market expansion.

"We are pleased to have secured this equity line with Southridge, a forward-thinking institutional investor, which provides us future flexibility in capital raising," said Chuck Piluso, chairman and CEO of DSC. "We plan to use this funding to take the company to the next level, by continuing our organic growth plans as well as to remain committed to our acquisition strategy."

Pursuant to the Agreement, DSC has the right, at its discretion, to sell to Southridge up to $20 million of its common stock from time to time over a 24-month period. DSC will have the right, but is not obligated, to sell stock to Southridge depending on certain conditions as set forth in the Agreement.

"We are thrilled to have the continued support of Southridge," added Piluso. "We are closing out an extremely successful year where we have experienced excellent growth and this investment by Southridge is a true testament to our vision and the market demand."

Comments

Data Storage Corporation is not a start-up but a public company founded in 2001.

It records revenues of $898,958 for the quarter ended June 30, 2011, increasing 75% compared to the same period one year ago, but with heavy net loss, $534,340. For the six-month period ended June 30, 2011, the company reports sales of $1,771,113, up 134% from the preceding year.

The increase in sales is primarily attributable to managed services with the acquisition of SafeData and increased capacity in data backup.

The provider of hybrid cloud solutions on a subscription basis in North America and professional services has storage equipment valued at more than $2 million.

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