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authID INC. Announces Closing of $8.2 Million Concurrent Registered Direct Offering and Private Placement led by Existing Shareholders and $8.9 Million Notes Exchange
authID to Continue Efforts to Eliminate Authentication Fraud and Deliver 100% Zero Trust Identity Protection on the Internet DENVER, May 26, 2023 (GLOBE
About this update from Authid Inc.
[{"type":"text","content":"authID to Continue Efforts to Eliminate Authentication Fraud and Deliver 100% Zero Trust Identity Protection on the Internet DENVER, May 26, 2023 (GLOBE NEWSWIRE) -- authID Inc. (NASDAQ: AUID) (“authID” or the “Company”), a leading provider of secure identity authentication solutions, today announced it has closed its previously announced registered direct offering (the “Registered Direct Offering”) and concurrent private placement (the “Private Placement”) for the sale to accredited investors of approximately 17.9 million shares of its common stock (the “Shares”). Four directors of authID, including the Chief Executive Officer and the Chairman of the Board of Directors participated in the Private Placement. The purchase price for one Share in the Registered Direct Offering and the concurrent Private Placement was $0.458 (or $0.50 if the purchaser is a director of the Company). The aggregate gross proceeds from the Registered Direct Offering and the concurrent Private Placement were approximately $8.2 million including the offset of principal and accrued interest under and cancellation of a $929,250 note entered into by the Company with Stephen Garchik on March 9, 2023. Gross cash proceeds were approximately $7.3 million before deducting placement agent fees and other expenses of the Offering. Simultaneously with the closing of the Registered Direct Offering and the concurrent Private Placement, the Company closed its previously announced agreement with holders (“Holders”) of its March 2022 Senior Secured Convertible Notes (the “Convertible Notes”) for exchange of approximately $8.9 million of outstanding principal amount of the Convertible Notes, and accrued but unpaid interest thereon, for approximately 19 million shares of common stock (the “Notes Exchange”). The exchange price for one share in the Notes Exchange was $0.472 (or $0.515 if the Holder is a director of the Company). The Company will not receive any cash proceeds from the Notes Exchange. The Company also obtained consents from Holders representing approximately 97% of the outstanding principal amount of the Convertible Notes to make amendments that will eliminate substantially all the restrictive covenants, and a related event of default, from the Convertible Notes. Madison Global Partners, LLC, acted as sole placement agent for the Registered Direct Offering and ...