Strategic Investor was Granted the Opportunity to Participate in the Company’s Growth Through Additional Future Funding at Premium Valuations

Safe-T Group Ltd., a global provider of cybersecurity and privacy solutions for consumers and enterprises, announced the closing of a non-dilutive strategic funding agreement of up to $4,000,000 to support the further growth of its consumer privacy solutions and its customer acquisition program.

Under the terms of the agreement, O.R.B. Spring Ltd. (“O.R.B.”) will provide the Company with an upfront cash commitment of $2,000,000 with an additional $2,000,000 available subject to achievement of certain milestones. The funding, made through a series of cash installments until July 2023, will be allocated specifically towards Safe-T’s customer acquisition program for one of its consumer privacy solutions. O.R.B. is controlled by Barak Avitbul, an accomplished technology industry entrepreneur and leader and the founder and former CEO of the Company’s enterprise privacy business subsidiary, NetNut Ltd.

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“This strategic funding of up to $4 million enables us to invest into our consumer privacy customer acquisition program and grow our business. Considering current market conditions, this deal structure is much more efficient for the Company as it allows us to eliminate a material amount of transaction costs and fees without impacting our existing shareholders at current market valuations,” said Shachar Daniel, Chief Executive Officer of Safe-T Group. “Importantly, we consider it a great privilege to have a former executive of our group making an investment in the Company by aligning his financial interests with those of the Company. This is a sign of commitment and confidence in our offering and business model, as well as in our team.”

The Company will repay the funding using a revenue share model that is based on sales generated only from customers of the new consumer privacy solution acquired with each funding installment. Each such funding installment shall be repaid within two years and if the repayments do not reach 100% of the installments, then the Company will cover the remaining amounts in cash or shares, at the Company’s sole discretion. Once the investment amount has been repaid in full, Safe-T and O.R.B shall share the attributed revenue of the consumer privacy solution in equal parts (50:50) until the lapse of five years after the date on which each installment was received by the Company.

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In addition, the investor was granted an opportunity to make additional investments in the Company through a series of warrants enabling him to increase his future interest in Safe-T’s businesses, including the attractive consumer privacy market. The warrants will be exercisable at prices reflecting premiums ranging from approximately 130% to 300% of the current share price, for periods of up to 3 years from the vesting dates of the warrants. Upon potential exercise of all granted warrants, the Company may receive additional aggregate gross proceeds of between $2,000,000 and $4,000,000, based upon the amount of additional funding provided.

The Company shall have the right to require the exercise of all or any portion of the warrants if the closing price of the Company’s Ordinary Shares exceeds 150% of the respective exercise price of each series of warrants for three consecutive trading days.

The Company has obtained an irrevocable undertaking from both O.R.B and Mr. Avitbul which includes a Grant of Irrevocable Proxy in connection to all voting rights attached to the Ordinary Shares of the Company underlying certain warrants or any shares issued for repayment. The undertaking shall solely apply in connection with certain voting matters and in accordance with the recommendations put forward to shareholders by the Board of Directors. The irrevocable undertaking will expire in regard to any shares sold by O.R.B. or Mr. Avitbul on a stock exchange market or upon the completion of a change of control.

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