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

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: …

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