Business
BIO-key Secures $2.2M in Funding via Promissory Note Financing
WALL, N.J., Dec. 22, 2022 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI) an innovative provider of Identity and Access Management (IAM) and
About this update from Bio-key International, Inc.
[{"type":"text","content":"WALL, N.J., Dec. 22, 2022 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI) an innovative provider of Identity and Access Management (IAM) and Identity-Bound Biometric (IBB) solutions, today announced the sale of a $2.2M, six-month 10% Secured Promissory Note to AJB Capital Investments LLC. Proceeds from the financing will be used for general working capital purposes. “As we look to opportunities next year, we elected to secure short-term funding to enhance our financial position,” commented CEO Michael DePasquale. “Today’s debt financing makes the most sense for our company and stakeholders in today’s market environment. We are confident in BIO-key’s global outlook in 2023 and our ability to service our obligations under the Note. We expect to enter the year with roughly $7M in annual recurring SaaS revenues from software contracts, a solid pipeline of customer opportunities, and hardware inventory that we look to convert to cash.” The Note was issued at an original issue discount of 9% and can be extended by the Company for an additional six months at a 12% annual interest rate. In connection with the Note, BIO-key issued to the investor 700,000 shares of common stock in payment of a commitment fee and a five-year warrant to purchase 200,000 shares of common stock at an exercise price of $3.00 per share. In the event the Note is paid in full within six months, BIO-key will repurchase 350,000 of the shares initially issued to the investor for aggregate payment of $1.00. Upon an event of default, in addition to standard and customary remedies, the note can be converted into shares of common stock at a conversion price equal to the 10 day volume weighted average sales price of the Company’s common stock on the date of conversion, subject to a cap. The aggregate number of shares of common stock issued at the closing plus the additional shares issuable upon exercise of the warrant and potential conversion of the Note are capped at 1,684,576, or 19.9% of the Company’s issued and outstanding shares. BIO-key has agreed to file a registration statement, for the public resale of the Shares and the Warrant Shares, which is required to be effective within 180 days after the closing date. Maxim Group LLC served as the placement agent in connection with the forgoing transaction. This press release shall not constitute an offer ...