Paltalk, Inc. Completes Sale of Secure Communications Assets to SecureCo, Inc.
Sale Provides for Cash Payment and Revenue Share to Paltalk, and Complementary IP to SecureCo to Accelerate Its Business Strategy
JERICHO, NY and NEW YORK, NY - 
(NewMediaWire) - July 23, 2020 - Paltalk, Inc., formerly known as PeerStream, Inc. (“Paltalk”)
(OTCQB: PALT), a leading communications software innovator that powers
multimedia social applications, and SecureCo, Inc. (“SecureCo”), a provider of
software applications and a network-as-a-service platform providing
hyper-secure and anonymous data communications, today announced that Paltalk
has completed the sale of substantially all of the assets related to its secure
communications business to SecureCo.
The secure communications business assets include
communication software and operational capabilities for secure messaging and
data applications targeting enterprise and government clients. The sale price
included current and deferred cash payments that total $250,000 and provides
for a revenue share on future software licensing, capped at a maximum of
$500,000.
“We believe that the sale of the secure communications
business is a milestone for the Company as it represents a modest monetization
of our historical investment in a business that we created and enables us to
partner in its continued success via our revenue share arrangement.
Importantly, the sale allows us to exclusively focus on our core business, the
Paltalk and Camfrog multimedia social apps, which together are host to one of
the world’s largest collections of video-based communities. The proceeds from
the sale and potential cash from future revenue share payments will add to our
financial strength and will be reinvested in the consumer apps,” said Jason
Katz, Chairman and Chief Executive Officer of Paltalk.
Alex Harrington, SecureCo’s CEO, added, “Paltalk has a
legacy of great communication software. The acquisition of these complementary
assets strengthens SecureCo’s product capabilities and paves the way for
success in providing differentiated cybersecurity solutions for government and
enterprise customers.”
ABOUT PALTALK, INC.
(OTCQB: PALT)
Paltalk is a communications software innovator that powers
multimedia social applications. We have also developed a suite of secure
communications software for use worldwide. Our product portfolio includes
Paltalk and Camfrog, which together host one of the world’s largest collections
of video-based communities. Our other products include Tinychat and Vumber. The
Company has an over 20-year history of technology innovation and holds 18
patents. For more information, please visit: http://www.paltalk.com.
ABOUT SECURECO, INC.
SecureCo offers software
applications and a network-as-a-service platform providing hyper-secure and
anonymous data communications for enterprise and government clientele. Our evasive
routing techniques and obfuscation hide attribution and other identity-based metadata,
offering superior confidentiality, privacy, and cyber resiliency. These capabilities are powered by our software-defined
mesh network
with a zero-trust architecture that masks sender and recipient traffic, offering
our clients resistance to eavesdropping, tampering, and disruption, even in
adversarial network environments. Our technology is well suited for telework,
mobile, IoT, or other applications in which safe transport of sensitive
information is paramount. For more
information, please visit: https://secureco.io.
FORWARD-LOOKING
STATEMENTS
This press release contains "forward-looking
statements." Such statements may be preceded by the words
"intends," "may," "will," "plans,"
"expects," "anticipates," "projects,"
"predicts," "estimates," "aims,"
"believes," "hopes," "potential," or similar
words. Forward-looking statements are not guarantees of future performance, are
based on certain assumptions and are subject to various known and unknown risks
and uncertainties, many of which are beyond Paltalk's control, and cannot be
predicted or quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements. Such risks
and uncertainties include, without limitation, the impact of the recent
coronavirus outbreak on our results of operations and our business; our ability
to effectively market and generate revenue from our applications, risks and
uncertainties related to our increasing focus on the use of new and novel
technologies, such as blockchain and Props tokens, to enhance our applications,
and our ability to timely complete development of applications using new
technologies; our ability to effectively integrate Props tokens into our
existing applications; our ability to effectively secure new software
development and licensing customers; legal and regulatory requirements related
to the use of blockchain, including us holding and distributing
cryptocurrencies and accepting cryptocurrencies as a method of payment for our
services; the use of the internet and privacy and protection of user data;
risks related to our holdings of digital tokens, including risks related to the
volatility of the trading price of digital tokens and our ability to convert digital
tokens into fiat currency; and our ability to manage our partnerships and
strategic alliances. More detailed information about Paltalk and the risk
factors that may affect the realization of forward-looking statements is set
forth in Paltalk's filings with the Securities and Exchange Commission
("SEC"), including the Paltalk's most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. Investors and security holders are
urged to read these documents free of charge on the SEC's website at
www.sec.gov.
All forward-looking statements speak only as of the date on
which they are made. Paltalk undertakes no obligation to update any
forward-looking statement or statements to reflect events or circumstances
after the date on which such statement was made, except to the extent required
by applicable securities laws.
CONTACTS:
Paltalk:
IR@paltalk.com
Stephanie Prince
PCG Advisory
sprince@pcgadvisory.com
646-762-4518
SecureCo:
PR@secureco.io