INTRUSION closes unsecured note financing

PLANO, Texas, March 10, 2022 (GLOBE NEWSWIRE) — INTRUSION Inc. (NASDAQ:INTZ), a leader in cyber attack prevention solutions, today announced that on March 10, 2022, the company (i) sold a 7.0% unsecured note pursuant to a securities purchase agreement with Streeterville Capital, LLC in the aggregate principal amount of $5,350,000 in exchange for $5,000,000 less certain reimbursed expenses (“note 1 ”) and (ii) received an option to sell another 7.0% unsecured note on substantially similar terms (“Note 2” and, together with “Note 1”, the “Notes”). The Note 2 put option is subject to, among other things, the company obtaining shareholder approval under Nasdaq rules within 180 days for the issuance of common stock in potential repurchases notes in an amount greater than 19.99% of the outstanding common shares. Stock. The Company expects net proceeds from the issuance of Note 1 to be approximately $4.7 million and intends to use the proceeds from this issuance for general corporate purposes.

The Notes have an interest rate of 7.0% per annum, which may be increased under certain circumstances. The maturity date of each note is 18 months from the date of issue of said note. Commencing six months after the date of issue of the applicable Note, the Holder has the right to redeem up to $500,000 of the unpaid balance of such Note per month. Payments may be made by the Company, generally at the option of the Company, (a) in cash, (b) by paying the redemption amount in the form of shares of its ordinary shares, the number of redemption shares being equal to the portion of the applicable redemption amount divided by the redemption conversion price or (c) a combination of cash and common stock. The “Redemption Conversion Price” will be equal to 85% multiplied by the average of the two lowest daily volume-weighted average prices per common share during the 15 trading days immediately preceding the date on which the holder submits a notice electing to repurchase a portion of the common stock. Note. The right of the Company to satisfy the redemption amount in ordinary shares is subject to certain limitations. Additional details regarding the purchase and terms of the Notes can be found in the company’s current report on Form 8-K filed with the Securities and Exchange Commission.

“We are delighted to partner with Streeterville Capital on this transaction to provide INTRUSION with additional financial flexibility to meet our capital needs while meeting growing customer demand for sophisticated cybersecurity solutions,” said said Tony Scott, CEO of INTRUSION. “The additional funding allows us to prudently invest in Shield, meet our operational needs and meet our capital allocation priorities to better support our strategy and growth, while creating sustainable shareholder value.”

Ascendant Capital Markets LLC, a registered broker-dealer and member firm of FINRA, served as the sole placement agent for the transaction.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Bonds or any other security and does not constitute an offer to sell or a solicitation of an offer to buy or a sale Bonds or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About INTRUSION inc.

Intrusion, Inc. is a cybersecurity company based in Plano, Texas. The company offers customers access to its proprietary Threat Intelligence Database containing the historical data, known associations and reputational behavior of over 8.5 billion IP addresses. After years of collecting global Internet intelligence and working exclusively with government entities, the company launched its first commercial product in 2021. Intrusion Shield is designed to allow enterprises to integrate a reputation-based Zero Trust security solution into their existing infrastructure. Intrusion Shield observes traffic flow and instantly blocks known malicious or unknown connections from entering or leaving a network to help protect against zero-day attacks and ransomware. Integrating Intrusion Shield into a network can improve an organization’s overall security posture by improving the performance and decision making of other solutions in its cybersecurity architecture.

Caution Regarding Forward-Looking Information

This press release may contain certain forward-looking statements, including, without limitation, projections of our capital needs and cash flows in the near future and the potential effects of this recent g financing, which statements reflect the expectations of management regarding future events and operational performance. These forward-looking statements speak only as of the date hereof and involve a number of risks and uncertainties. These statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including understood the risk that this financing will fail. provide the capital necessary for the Company to execute its current business strategies, as well as the risks we have detailed in the Company’s most recent reports on Forms 10-K and 10-Q, in particular under the heading “Capital Factors”. risk”.

IR contact

Alpha IR Group

Mike Cummings or David Freund

[email protected]

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