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Castellum, Inc. Announces Signing of Non-Binding LOI for East Coast Government Contractor

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Castellum, Inc. (NYSE-American: CTM), a technology firm specializing in cybersecurity and IT services for federal agencies, announced a non-binding letter of intent to acquire a government contractor focused on similar sectors. This move follows Castellum's strategy to enhance its capabilities and customer base. The acquisition, pending due diligence, could increase Castellum's annual revenue run-rate to over $60 million from the current $44 million. The company aims to close the deal within 90 days, furthering its buy-and-build strategy to double revenue in 2023.

Positive
  • Potential acquisition could increase annualized revenue run-rate to over $60 million.
  • Broadens customer base with additional capabilities in cybersecurity and IT services.
Negative
  • Acquisition is subject to due diligence and final agreement, which carries execution risk.
  • Forward-looking statements indicate uncertainty; actual results may differ materially from expectations.

BETHESDA, Md., Jan. 18, 2023 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM), a cybersecurity, electronic warfare, data analytics, software, and IT services company focused on the federal government, announces that it has signed a non-binding letter of intent to acquire an East Coast based government contractor which focuses on cybersecurity, data analysis, and other IT services for federal civilian agencies. Subject to customary due diligence and the execution of a definitive purchase agreement, Castellum expects to close the transaction within the next 90 days.

The potential acquisition, when combined with Castellum’s other, previously announced, pending non-binding LOI is expected to boost Castellum to over a $60 million annualized revenue run-rate versus a current $44 million run-rate based on announced Q3 2022 results.

“We are pleased to announce the execution of another LOI to extend our buy-and-build strategy,” said Mark Fuller, President and CEO of Castellum. “This additional work in Federal Civilian agencies, will further broaden Castellum’s customer base, while adding new capabilities and leveraging past performance enjoyed by our Department of Defense (DoD) customers with whom we have strong and growing relationships. We also are talking with other companies that have business with DoD and Federal Civilian agencies, about potential acquisition as we are working to double our top line run rate in 2023.”

About Castellum, Inc.:

Castellum Inc. (NYSE - American: CTM) is a technology company focused on leveraging the power of information technology to help solve our Nation’s most pressing national security challenges. We provide US government and commercial clients with Cybersecurity, Software Development, Systems Engineering, Information / Electronic Warfare, Program Support, and Data Analytics services. We also offer subject matter expertise in artificial intelligence / machine learning, 5G technologies, model-based systems engineering, program management, information assurance, intelligence analysis, and CMMC compliance. In addition to constantly innovating and enhancing our organic capabilities, Castellum is executing strategic acquisitions of firms that share our passionate commitment to US national security and have a history of bringing exceptional value to their clients - http://castellumus.com/.

Forward-Looking Statements:  

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters disclosed at www.sec.gov. These risks and uncertainties could cause the company’s actual results to differ materially from those indicated in the forward-looking statements. Specifically, Castellum may not close on the LOI announced today which would cause future revenue to be less than anticipated.

Contact:

Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: 646.893.5835 x1
Email: lisa@skylineccg.com; info@castellumus.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b62b73b9-e445-459d-9cb0-6bd0c492dfa9


FAQ

What is the acquisition announced by Castellum (CTM) on January 18, 2023?

Castellum announced a non-binding letter of intent to acquire an East Coast government contractor focusing on cybersecurity and IT services for federal agencies.

How will the acquisition affect Castellum's revenue?

The acquisition could boost Castellum's annualized revenue run-rate to over $60 million, up from $44 million.

What is the expected timeline for the acquisition by Castellum (CTM)?

Castellum expects to close the acquisition within the next 90 days, subject to due diligence.

What challenges could Castellum face with the acquisition?

The acquisition is subject to customary due diligence, and there is a risk that it may not close, affecting future revenue.

Castellum, Inc.

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