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BIO-key International Completes Conversion of all Outstanding Preferred Stock into Common Stock
Jun. 04, 2018 09:24AM PST
Data Investing
BIO-key International Inc (NASDAQ:BKYI), a provider of biometric authentication and security solutions announced that all remaining outstanding shares of the company’s Series A-1 and Series B-1 convertible preferred stock and all accrued and unpaid dividends have been converted into common stock at a conversion price of $3.60 per share. As quoted in the press release: …
BIO-key International Inc (NASDAQ:BKYI), a provider of biometric authentication and security solutions announced that all remaining outstanding shares of the company’s Series A-1 and Series B-1 convertible preferred stock and all accrued and unpaid dividends have been converted into common stock at a conversion price of $3.60 per share.
As quoted in the press release:
As a result of these conversions and other preferred stock conversions earlier in 2018, BIO-key has eliminated approximately $638,000 in future annual preferred stock dividends payments. Additionally, BIO-key has satisfied payment of all accrued preferred stock dividends through the issuance of common stock at a price of $3.60 per share.
In 2018, BIO-key has paid $828,441 in accrued preferred stock dividends through the issuance of 230,123 shares of its Common stock. Reflecting the preferred stock conversions and accrued dividend payments in 2018, BIO-key has issued 4,885,569 shares of common stock, increasing its total issued and outstanding shares to 12.6 million.
BIO-key’s CEO Michael DePasquale commented, “We are grateful for the support and confidence of these long-term investors who converted preferred stock and accrued dividends into common stock at roughly a 61% premium to the Friday June 1st closing price of $2.23. The conversions simplify and strengthen BIO-key’s capital structure while eliminating all future dividend payment requirements.”
Year to Date Conversions of Convertible Preferred Stock and Accrued Dividends
| Preferred Shares Converted to Common |
Accrued Dividends Converted into Common |
Conversion Price |
Common Shares Issued |
Date | Reduction in Annual Dividends |
|
| Series B-1 2.5% Convertible Preferred | 60,420 | $3.60 | 1,678,334 | 3/23/2018 | $ 151,050 | |
| Accrued Series B-1 dividends | $417,084 | $3.60 | 115,857 | 3/23/2018 | ||
| Series B-1 2.5% Convertible Preferred | 44,580 | $3.60 | 1,238,334 | 5/23/2018 | $ 111,450 | |
| Accrued Series B-1 dividends | $55,342 | $3.60 | 15,373 | 5/23/2018 | ||
| Series A-1 6% Convertible Preferred | 39,088 | $3.60 | 1,085,778 | 4/3/2018 | $ 234,528 | |
| Accrued A-1 dividends | $330,552 | $3.60 | 91,820 | 4/3/2018 | ||
| Series A-1 6% Convertible Preferred | 23,508 | $3.60 | 653,000 | 5/31/2018 | $ 141,048 | |
| Accrued A-1 dividends | $25,463 | $3.60 | 7,073 | 5/31/2018 | ||
| Totals | $828,441 | 4,885,569 | $ 638,076 |