BIO-key raises $2.55m in private placement
11 July 2019 17:23 GMT

BIO-key International has announced the sale of a $3.06 million Senior Secured Convertible Note to Lind Global Macro Fund, LP. At closing, $2.55 million was funded, with the proceeds to be used for general working capital purposes, including repayment of outstanding indebtedness.

The Note is secured by a first priority lien on substantially all of BIO-key’s assets and properties and is convertible at the option of the Investor into shares of BIO-key common stock at a fixed conversion price of $1.50 per share.

BIO-key CEO Michael DePasquale commented, “BIO-key completed this funding to ensure that we have sufficient financial resources to fund our business and execute on our growth strategy. We believe this financing structure, including its above-market conversion price and 12 month repayment schedule, provides an attractive source of capital for our company, particularly in light of the unforeseen delay in the receipt of software license payments from a large international customer.”

The principal amount of the Note is due and payable as follows: $918,000 is due 180 days after funding; $1,071,000 is due 270 days after funding, and the balance is due 12 months after the date of funding. BIO-key has the right to prepay the Note in full at any time without penalty, in which case the Investor will have the option of converting 25% of the outstanding principal amount of the Note into BIO-key shares at $1.50 per share.

Additionally, the Investor was issued a five-year warrant to purchase 2,000,000 shares of common stock at a fixed exercise price of $1.50 per share. The Warrant is immediately exercisable.

Maxim Group LLC served as placement agent in connection with the forgoing transaction.

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