November 12, 2015 -
Biometrics firm BIO-key International reported that it has completed an investment and technology license partnership with China Goldjoy Group Limited (CGG) and other investors.
The purchase agreements are in connection with a $10.5 million private placement of convertible preferred equity with a wholly-owned indirect subsidiary of CGG and a third investor, and an additional $550,000 investment in its Series A-1 Convertible Preferred Shares.
Coinciding with the private placement transactions, BIO-key Hong Kong Ltd. has also secured a commercial license to a portfolio of mobile and online payment and security software technologies from certain CGG subsidiaries for a one-time fee of $12 million.
BIO-key said its strategy is to leverage its biometric matching solutions and WEB-key secure biometric cloud transport solutions along with the mobile and online payment technologies licensed from subsidiaries of CGG.
“Today’s strategic investment and licensing agreement substantially strengthens our technology solutions portfolio to aggressively pursue sales and business development opportunities in new markets on a global basis,” said Mike DePasquale, chairman and CEO of BIO-key. “This along with our recent $8.45 million capital raise allows us to enhance the capabilities of other BIO-key solutions while developing new turnkey hardware/software products.”
Under the software license purchase contract, BIO-key has secured exclusive rights to CGG’s subsidiaries’ development software and source code for point-to-point identification using biometric encryption and decryption technologies protected by CGG’s subsidiaries’ FingerQ product patent portfolio.
The FingerQ product line includes 16 patents covering mobile payment systems and mobile payment methods based on biometric authentication as well fingerprint authentication systems and a fingerprint authentication method based on NFC.
The license deal also allows BIO-key to develop new solutions to address the growing demand for secure mobile transactions.
Bio-key will host a webcast/conference call to review its Q3 2015 results on November 16 at 10:00 a.m. EST, as well as issue its Q3 results pre-market the same day.
Previously reported, Bio-key is Microsoft’s exclusive biometrics solution partner and are demonstrating fingerprint readers at the Microsoft Ignite your Business with Windows 10 and Office 2016 launch events.