DatChat Concludes Letter of Intent to Acquire Avila Security Corporation and Its Portfolio of Web 3.0 Patents for Blockchain Messaging, Blockchain Digital Rights Management, Secure Audio and Video Streaming, and Self-Sovereign Identification Technology – Form 8 -K

DatChat Concludes Letter of Intent to Acquire Avila Security Corporation and its Portfolio of Web 3.0 Patents of Blockchain Messaging, Blockchain Digital Rights Management, Secure Audio and Video Streaming and Self-Sovereign Identification Technology

NEW BRUNSWICK, NJ, Jan. 20, 2022 (GLOBE NEWSWIRE) — DatChat, Inc. (“DatChat” or the “Company”) (Nasdaq: DATS), a communications and social media company that empowers users to communicate , to share , and post with privacy protections and screenshots, today announced that the company has signed a letter of intent to acquire Avila Security Corporation (“Avila Security”), allowing the company to secure four issued patents and two pending applications, subject to customary closing conditions. Terms of the transaction include $1 million in cash and greater of 739,650 restricted common stock or $2.5 million restricted common stock [of DatChat] based on the average closing price of the 30 days preceding the closing.

If completed, the transaction will expand DatChat’s intellectual property assets to include blockchain-based digital rights management and object sharing technology, including WebRTC encrypted real-time video and audio communications. The proposed acquisition follows the appointment of Mark Mathis as chief blockchain architect, demonstrating continued investment and effort in implementing commercially operational blockchain technology in messaging .

“The proposed acquisition of the intellectual property will further position our significant competitive advantage which we believe will govern key aspects of Web 3.0 and Metaverse infrastructure,” said DatChat CEO Darin Myman. “From there, we believe we will be able to take advantage of new revenue opportunities from both licensing and developing this technology. Notably, the only digital rights management patents based on the blockchain will give us the ability to develop a platform that allows users to easily license and manage NFTs, audio and video content, documents, subscriptions, messages, self-sovereign identity and much more. that this acquisition will strengthen our position as a major player in e-commerce, advertising and Web 3.0 messaging and Metaverse.

Patents to Acquire:

• US Patent 11,151,229 – Secure messaging service with digital rights management using blockchain

• US Patent 10,873,852 – POOF: an application, system and method for sharing secure text messages and mobile objects therefor

• US Patent No. 11,100,197 B1 – WebRTC secure real-time communication service for streaming audio and video communications

• US Patent No. 11,176,226 B2 – Secure Messaging Service with Digital Rights Management Using Blockchain Technology

The letter of intent is non-binding and closing of the contemplated transaction is subject to satisfaction of numerous conditions, including satisfactory due diligence, negotiation and execution of binding definitive agreements. The parties have agreed to an exclusivity period until April 19, 2022 to reach the definitive agreement. There can be no assurance that the terms of any definitive agreement will be accepted or that the proposed acquisition will be completed as proposed or at all.

The DatChat Social Network+ application is available as a free download for iOS and android.

About DatChat, Inc.

DatChat Inc. is a blockchain, cybersecurity, and social media company that not only focuses on protecting privacy on personal devices, but also protects user information after it is shared with others. DatChat Messenger & Private Social Network introduces technology that allows users to change the viewing time of their messages before or after they are sent, prevents screenshots and hides encrypted photos in plain sight on camera roll. DatChat’s patented technology provides users with a traditional text-based experience while providing control and security over their messages. With DatChat Messenger, a user can decide how long their messages last on a recipient’s device, while being confident that they can delete individual messages or entire message threads at any time, giving feels like the conversation never happened.

Forward-looking statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may”, “could”, “will”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “continue”, “predict”, “plan” , “project”, “” Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are based on information available to us as of the date of this release. These forward-looking statements are based on current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the Company’s filings with the SEC, without limitation to risk associated with its activities contained therein. Therefore, actual results could differ materially. The Company expressly disclaims any obligation to update or change any statements, whether as a result of new information, future events or otherwise, except as required by law.

contacts:
Investor Relations contact:
Alex Thompson, John Yi
Gateway Group, Inc.
(949) 574-3860
[email protected]

Press contacts:
Natalie Balladarsch
Gateway Group, Inc.
(949) 574-3860
[email protected]

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