Data Deposit Box Announces Warrant Exercise Incentive Program

Data Deposit Box Inc., provider of cloud backup and recovery technology, announces a warrant exercise program designed to encourage the early exercise of its 23,775,594 outstanding unlisted common share purchase warrants.

Each warrant is exercisable for one common share in the capital of Data Deposit Box at an exercise price of $0.07, and expires on December 28, 2018 or March 15, 2018.

Under the terms of the incentive program, in order to encourage the early voluntary exercise of the warrants, for a period from December 29, 2017 until 4:30 p.m. (Toronto time) on January 31, 2018. The company is offering to all non-US resident holders of warrants, for each warrant exercised under the incentive program, one (1) additional common share purchase warrant at no additional cost. Each incentive warrant will entitle the holder to acquire one common share in the capital of Data Deposit Box at a price of $0.25 per share for a period of two (2) years from the date of issuance. Only those holders of warrants who exercise all of their warrants during the early exercise period will be eligible to receive the incentive warrants.

The gross proceeds to Data Deposit Box, if all of the warrants are exercised, would be approximately $1.66 million. The terms and conditions of the incentive program, including the method of exercising the warrants, will be set forth in a letter to be delivered to the registered holders of the warrants. Any warrants that are not exercised prior to the expiry of the early exercise period will remain outstanding in accordance with their original terms, and in particular, the holders thereof will no longer be eligible for incentive warrants.

If holders of warrants avail themselves of the incentive program, this will strengthen company’s current cash position and provide it with additional working capital.

Some warrants eligible for participation in the incentive program may be held by insiders of Data Deposit Box. Participation by any such insiders in the incentive program may constitute a related party transaction pursuant to Multilateral Instrument 61-101 – Take-over bids and Special Transactions. The firm is exempt from the formal valuation requirement pursuant to subsections 5.5(a) and (b) of MI 61-101, and from the minority approval requirement pursuant to subsection 5.7(1)(a) of MI 61-101.

The incentive program is subject to the receipt of applicable regulatory approvals, including the approval of the Canadian Securities Exchange, if applicable.