BIO-key Raises US$2.55 Million in Private Placement

BIO-key International (NASDAQ:BKYI), a biometric solutions company announced that it has closed a US$2.55 million private placement sale of a secured note. Lind Global Macro Fund purchased the convertible secured note, backed by the majority of BIO-key’s assets.

As quoted in the press release:

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.

Click here to read the full press release.