Safe-T Group Secures a Non-Dilutive Line of Credit from United Mizrahi-Tefahot Bank Ltd.
May 26 2022 - 8:30AM
Safe-T® Group Ltd. (NASDAQ: SFET) (TASE: SFET), a global provider
of cyber-security and privacy solutions to consumers and
enterprises (“Safe-T” or the “Company”), announced today that its
consumer business (wholly-owned subsidiary, CyberKick Ltd.) has
entered into a revolving line of credit agreement (the "Credit
Facility") with United Mizrahi-Tefahot Bank Ltd. (the “Bank”), to
support the growth of its consumer privacy solutions, in an amount
of up to $2,000,000 for a period of 12 months, at an interest rate
of Secured Overnight Financing Rate (“SOFR”) plus 5.5% per annum,
to be paid quarterly for the actual withdrawn balance. The Credit
Facility is part of the Company’s broader efforts to attract
diverse long-term sources of capital while creating non-dilutive
financing alternatives. As a part of this strategy, the Company
plans to work with the Bank to extend the Credit Facility duration
upon maturity, and to increase it.
"We are pleased to complete this non-dilutive
credit facility that provides our consumer business with financial
flexibility. This facility will support our commercialization
efforts and growth as we scale up our consumer acquisition program.
Furthermore, we believe that securing this credit line from a
leading Israeli bank is an important validation of our improved
financial profile,” said Shachar Daniel, Chief Executive Officer of
Safe-T.
The Credit Facility offers a 3x multiple on
eligible revenues, is secured against all of the assets of
CyberKick Ltd., is guaranteed by Safe-T and includes a refundable
deposit by the Company of USD $500,000.
The Company’s consumer acquisition program is
based upon a 5-year business model that employs a user Lifetime
Value (“LTV”) metric. LTV is a calculation of the average dollar
amount of revenue anticipated to be received from subscribers over
their retention period. According to this model, the Company can
estimate future recurring revenue based upon the number of users at
any given point of time, multiplied by the relevant LTV. Each
product produced by the Company has an associated LTV metric. Based
upon Safe-T’s LTV model, investments into consumer acquisition are
targeted to generate at least a 3x return, producing millions in
recurring revenues over the following years.
About Safe-T Group Ltd.
Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a
global provider of cyber-security and privacy solutions to
consumers and enterprises. The Company operates in three distinct
segments, tailoring solutions according to specific needs. The
segments include, enterprise cyber-security solutions, enterprise
privacy solutions, and consumer cyber-security and privacy
solutions.
Our cyber-security and privacy solutions for
consumers provide a wide security blanket against ransomware,
viruses, phishing, and other online threats as well as a powerful,
secured and encrypted connection, masking their online activity and
keeping them safe from hackers. The solutions are designed for the
advanced and basic users, ensuring full personal protection for all
personal and digital information.
ZoneZero® cyber-security solutions for
enterprises, designed for cloud, on-premises and hybrid networks,
mitigate attacks on enterprises’ business-critical services and
sensitive data, while ensuring uninterrupted business continuity.
Organization’s access use cases, whether from outside the
organization or within the organization, are secured according to
the “validate first, access later” philosophy of Safe-T’s zero
trust.
Our privacy solutions for enterprises are based
on our world’s fastest and most advanced and secured proxy network,
enabling our customers to collect data anonymously at any scale
from any public sources over the web using a unique hybrid network.
Our network is the only one that comprises of both millions of
residential exit points and hundreds of servers located at our ISP
partners around the world. The infrastructure is optimally designed
to guarantee the privacy, quality, stability and the speed of the
service.
For more information about Safe-T, visit
https://www.safetgroup.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995 and other
Federal securities laws. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” and similar
expressions or variations of such words are intended to identify
forward-looking statements. For example, Safe-T is using
forward-looking statements in this press release when it discusses
extending its cash runway into 2023, the possibility of extending
the maturity and increasing the amount of the Credit Facility,
expected commercialization efforts and growth and the targeted
revenues and returns expected from investments into consumer
acquisition. Because such statements deal with future events and
are based on Safe-T’s current expectations, they are subject to
various risks and uncertainties and actual results, performance or
achievements of Safe-T could differ materially from those described
in or implied by the statements in this press release. The
forward-looking statements contained or implied in this press
release are subject to other risks and uncertainties, including
those discussed under the heading “Risk Factors” in Safe-T’s annual
report on Form 20-F filed with the Securities and Exchange
Commission (“SEC”) on March 31, 2022, and in any subsequent filings
with the SEC. Except as otherwise required by law, Safe-T
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. References and links to websites have been provided as a
convenience, and the information contained on such websites is not
incorporated by reference into this press release. Safe-T is not
responsible for the contents of third-party websites.
INVESTOR RELATIONS CONTACTS:
Steve Gersten, Director of Investor RelationsSafe-T Group
Ltd.813-334-9745investors@safe-t.com
Michal EfratyInvestor Relations,
Israel+972-(0)52-3044404michal@efraty.com
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