Internet security company Cloud Security Corp announced that it had inked a common stock purchase agreement with investment company Kodiak Capital Group. The terms of the agreement stipulated that Cloud Security could sell at its own discretion its common stock worth up to USD 2 million to Kodiak Capital within one year. The stock purchase agreement would only become effective after the approval given by the US Securities and Exchange Commission. The proceeds of the sale would be used for the firm's expansion as well as for general business purposes.
The agreement also sets no upper limits on the price that Kodiak may pay for the purchase of the stocks. The investment firm also promised not to short sell or hedge the common stock sold to it by Cloud Security.
Cloud Security Chief Executive Officer Safa Movassaghi thanked Kodiak for the deal. "Kodiak shares our opinion that Cloud Security Corporation is well positioned in the rapidly developing internet security sector. With this capital infusion we will continue to develop and deploy innovative technology that improves cybersecurity," Movassaghi added.
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