Data Storage Corp Stock Price, News & Analysis

Data Storage Corporation (NASDAQ: DTST, DTSTW) has successfully completed an underwritten public offering of 1,600,000 units at $6.75 per unit, raising approximately $10.8 million before expenses. Each unit includes one share of common stock and one warrant at an exercise price of $7.425. The company plans to utilize the net proceeds for sales force expansion, marketing, business development, and covering liabilities related to its acquisition of Flagship Solutions, LLC. The offering was managed by Maxim Group LLC, and the common stock began trading on May 14, 2021.

Data Storage Corporation (OTC: DTST) has priced its upsized public offering at $6.75 per unit, comprising one share of common stock and a warrant at an exercise price of $7.425. The offering totals 1,600,000 units, expected to generate gross proceeds of $10.8 million. A reverse stock split at a 1-for-40 ratio will be effective on May 14, 2021, prior to trading on Nasdaq. Underwriters have an option for an additional 240,000 units. The offering closes on May 18, 2021. Maxim Group LLC is the sole book-running manager for the offering.

Data Storage Corporation (OTC: DTST) has announced the promotion of Joseph Lupo to Director of Service Delivery. With over 15 years of industry experience, Lupo will oversee the Service Delivery Team, enhancing client experience and satisfaction. His previous roles at ABC Services included significant contributions to data center build-outs and client onboarding. Executive VP Thomas Kempster highlighted Lupo's leadership as critical in expanding their customer base while maintaining a 95% client retention rate and a 97% customer satisfaction rate. This leadership change aims to bolster growth and strengthen operations.

Data Storage Corporation (OTC: DTST) reported a 10% revenue increase to $9.3 million for the year ended December 31, 2020, despite COVID-19 impacts. Key product segments saw strong growth: Nexxis VoIP Services grew 44%, and cloud services rose 6.8%. The company invested in infrastructure and launched new cybersecurity solutions. A merger with Flagship Solutions aims to enhance offerings, while the expansion into Canada includes two new Tier 3 data centers. Operating expenses rose by 13%, but net income increased significantly to $173,359 from $29,323 in 2019.

Data Storage Corporation (OTCQB: DTST) appointed Thomas Kempster as Executive Vice President of Strategic Development, focusing on enterprise distribution channels and strategic partnerships. Previously President of Service Operations, Kempster's experience includes founding ABC Services, Inc. and developing partnerships with industry leaders like IBM and Microsoft. CEO Chuck Piluso emphasized Kempster's contributions and the refocusing of internal resources to accelerate growth into new sectors.

Data Storage Corporation (OTCQB: DTST) has entered a joint venture with Able-One Systems Inc. to expand its IBM cloud services in Canada. This collaboration aims to meet the growing demand for cloud solutions from businesses utilizing IBM Power Systems. The joint venture is effective immediately and will result in the establishment of two new Tier 3 enterprise-level data centers. Data Storage Corporation seeks to leverage its expertise in disaster recovery, security, and monitoring to tap into new markets in Canada, providing services tailored to both enterprises and small to medium-sized businesses.

Data Storage Corporation (OTCQB: DTST) has announced a definitive merger agreement with Flagship Solutions, LLC, integrating its wholly owned subsidiary, Data Storage FL, LLC, into Flagship. This merger aims to enhance operational efficiency and create a comprehensive multicloud solution for enterprise and middle-market customers. Flagship, an IBM Gold partner, has seen robust growth in managed services, with strong year-on-year performance. The merger is expected to yield significant synergies and provide a competitive advantage in the growing cloud services market, projected to reach $502 billion by 2023.

Data Storage Corporation (OTCQB: DTST) has announced a merger with Flagship Solutions Group, consolidating its position in the cloud services sector. This strategic move aims to create a comprehensive, one-stop multicloud IT solutions provider, leveraging the strengths of both companies. Mark Wyllie will lead the new Flagship subsidiary post-merger. The merger is expected to enhance operational efficiency and offer extensive cross-selling opportunities in various industries. With the cloud services market projected to reach $502 billion by 2023, this merger positions DTST to capture significant market share.

Data Storage Corporation (OTCQB: DTST) has announced a technology alliance with VACAVA to enhance its cloud solutions. VACAVA's RapidBIZ platform allows for no-code application development and deployment, streamlining IT processes. This partnership aims to boost efficiency for DSC's cloud customers by enabling faster application development—up to 80% quicker—improving service delivery within weeks. Both companies foresee this collaboration as a significant value-add for clients, emphasizing productivity and cost-effectiveness in addressing business challenges.