BIO-key International Secures $3.1 Million Funding Through Warrants
BIO-key International Secures Significant Funding
BIO-key International, Inc. (NASDAQ: BKYI), a leading innovator in biometric authentication solutions, has announced a strategic agreement that will infuse approximately $3.1 million into the company. This comes as part of a warrant inducement transaction with an institutional investor to exercise previously issued warrants.
Details of the Warrant Inducement Agreement
The agreement allows the investor to exercise outstanding Series A and Series B Warrants to purchase a total of 3,091,668 shares of common stock at a reduced exercise price of $1.02 per share. This financing will enable BIO-key to support its ongoing growth in biometric identity and access management.
Role of Placement Agent
Maxim Group LLC is designated as the exclusive Placement Agent for this transaction, providing essential services to ensure the successful execution and funding of this agreement.
New Warrants Issued
As part of this agreement, BIO-key will also issue newly unregistered Warrants allowing the investor to purchase an additional 6,183,336 shares at the same reduced price of $1.02 per share. These warrants will be immediately exercisable and remain valid for five years from the date of issuance.
REGISTRATION WITH THE SEC
To ensure regulatory compliance, BIO-key has committed to filing a registration statement with the Securities and Exchange Commission (SEC) to facilitate the resale of the shares that will be issued upon the exercise of these new warrants.
About BIO-key International, Inc.
BIO-key is transforming the landscape of cybersecurity and identity management through its advanced biometric-centric solutions. With a focus on secure access for over forty million users, BIO-key allows its clients various authentication methods, including phoneless, tokenless, and passwordless options. Their PortalGuard IAM solution is designed to be both cost-effective and secure, allowing seamless access to critical information and applications.
Company Commitment to Innovation
As the need for secure access continues to grow, BIO-key remains committed to innovating its offerings, which include user-friendly authentication factors designed for a diverse range of environments. Their solutions adapt fluidly within businesses, helping organizations mitigate risks while accommodating users' needs.
Investor Relations
Investors seeking more information can connect with BIO-key's investor relations team, including William Jones and David Collins. They are available for inquiries and can be reached via email to discuss the company's innovative solutions and growth initiatives.
Frequently Asked Questions
What is the purpose of the warrant inducement transaction?
The warrant inducement transaction is designed to raise funds for BIO-key International to support its ongoing growth and innovation in the field of biometric authentication.
How much funding will BIO-key International secure through this agreement?
BIO-key International expects to secure approximately $3.1 million from this warrant inducement agreement.
Who is the placement agent for this transaction?
Maxim Group LLC has been appointed as the exclusive Placement Agent for BIO-key's warrant inducement transaction.
What are the terms of the new warrants issued?
The new warrants allow the investor to purchase an additional 6,183,336 shares at a price of $1.02 per share, valid for five years from issuance.
How will the exercise of the warrants benefit the company?
The proceeds from the exercise of the warrants will be utilized to enhance BIO-key's growth initiatives and to further develop its innovative biometric solutions.
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