DTST News & Events

Data Storage Corporation announced the appointment of a group of experienced strategic advisors to support the execution of its post-tender offer strategy and the launch of a newly redesigned corporate website. The Company also provided a business update as it advances its next phase of growth. Following the divestiture of its cloud services business, Data Storage is advancing a "disciplined hybrid acquisition strategy targeting businesses with predictable cash flows, strong margins, and established customer bases, particularly within fragmented technology markets," the company said.

Data Storage provided a letter to shareholders from its CEO, Chuck Piluso. "As we look ahead to 2026, I would like to outline the strategic direction we plan to pursue while noting that as we progress through the Tender Offer process, expected to be completed on or about January 12th, we will gain a clear understanding of our available cash and can begin executing the plan.... Our 2026 plan centers on a disciplined hybrid acquisition strategy that focuses on technology consolidation and the acquisition of companies at attractive multiples, while remaining selective in pursuing additional investments across the technology market. We intend to evaluate acquisition opportunities including technology-enabled service providers such as managed IT, cybersecurity monitoring, telecom and UCaaS platforms... We intend to prioritize acquisitions in areas such as compliance-as-a-service, document security and digitization, access-control, healthcare BPO, and niche micro-SaaS+ services... We remain committed to evaluating companies that utilize GPUs, AI workflow tools, and automation platforms-pursuing them only when aligned with disciplined valuation criteria. To support our efforts, we have established an experienced advisory team that has the background to assist us in direction and diligence... To support this strategy, we plan to further repeat our centralized inbound marketing engine, enhance cross-selling capabilities, leverage a shared CRM, and continue implementing unified operational standards across business units."

Data Storage announced its intention to commence a tender offer to purchase for cash up to 6,192,990 shares of its common stock, par value $0.001 per share, at a purchase price of $5.20 per share, less any applicable withholding taxes and without interest, for an aggregate purchase price of up to $32,203,548. The Company intends to distribute to stockholders and file a tender offer statement on Schedule TO with the U.S. Securities and Exchange Commission, December 8, 2025. The Company intends to commence the Offer. The Offer, proration period, and withdrawal rights is scheduled to expire at 12:00 midnight, at the end of the day, New York City time, on Wednesday, January 7, 2026, unless the Offer is extended. Stockholders must validly tender and not validly withdraw their common stock before the Expiration Time to be eligible to participate in the tender offer. Tendered shares of common stock may only be withdrawn on or before the Expiration Time.

Data Storage announced the completion of its repurchase of substantially all outstanding warrants originally issued in July 2021. The Company paid an aggregate of $2,049,388 to repurchase warrants exercisable for a total of 858,750 shares of common stock, par value $0.001 per share. The repurchase was conducted under the fundamental transaction provision of the July 2021 Warrants, which was triggered by the closing of the Company's sale of its CloudFirst subsidiary on September 11, 2025. The repurchase period closed on October 13, 2025, and all related transactions have now been settled. Following completion, only 172,500 warrants remain outstanding, further simplifying the Company's capital structure and eliminating a potential source of future dilution.