BIO-key International Completes Conversion of all Outstanding Preferred Stock into Common Stock

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

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