Data Storage Corporation (Nasdaq: DTST) has announced its intention to begin a tender offer to repurchase a significant number of its common stock shares.
The tender offer will include the purchase of up to 6,192,990 shares at $5.20 per share, totaling $32,203,548, with cash payments and without interest.
The company plans to distribute information to stockholders and file a tender offer statement with the SEC on December 8, 2025.
Strategic Direction
Data Storage Corporation is shifting its focus to high-growth areas such as GPU Infrastructure-as-a-Service, AI-driven software applications, cybersecurity, and voice/data telecommunications.
Capital Return Opportunity
The tender offer provides stockholders with an opportunity to receive cash for their shares and potentially increase their percentage ownership in the company.
No Recommendation
The company and its board do not provide recommendations on whether stockholders should participate in the tender offer, urging them to consult financial advisors.
- The offer aims to return capital to stockholders, potentially benefiting those who choose to participate and increasing ownership for those who do not.
- Funds for the tender offer will come from the company's cash reserves and proceeds from recent divestitures, ensuring no financial conditions on the offer.
- Data Storage Corporation's strategic shift away from cloud-based disaster recovery services highlights a new focus on VoIP/Unified Communications services through its subsidiary, Nexxis.
Stockholders of Data Storage Corporation are encouraged to review the upcoming tender offer statement and carefully consider their options regarding participation.