September 19, 2017 -
ImageWare Systems, Inc. has completed an $11 million registered direct offering to certain accredited investors after selling an aggregate of 11,000 shares of new Series A Preferred Stock at $1,000 per share.
The company expects the total proceeds to be approximately $10.1 million after accounting for previously advanced cash that was converted into the transaction.
ImageWare intends to use the proceeds for general corporate purposes such as marketing, sales and working capital.
In addition, the company expects to consolidate $20.6 million worth of shares of existing Series E, Series F and Series G preferred stock into the new class of Series A Preferred Stock.
The only preferred shares expected to remain outstanding following the exchange is approximately 239,000 shares of Series B Preferred Stock.
“This financing recognizes the strong progress we’ve made to commercialize our leading identity management solutions for the enterprise and consumer markets, as well as our significant prospects for growth in those areas,” said Jim Miller, ImageWare’s chairman and CEO. “Not only are we now in a better position to capitalize on the growing industry demand for biometric solutions, but we believe our bolstered balance sheet and operational momentum will enable us to further expand our partner agreements for our mobile and cloud-based products.”
Along with the financing, ImageWare has appointed Robert Clutterbuck and Charlie Frischer to its board of directors.
Clutterbuck is a significant ImageWare shareholder and the founder, managing director and portfolio manager at Clutterbuck Capital Management. He has more than 30 years of investing experience at McDonald & Company Investments, Inc., where he served as chairman and chief executive partner of Key Capital Partners, and as CEO of McDonald Investments Inc.
Since January 2015, Clutterbuck has served as an independent director of Westmoreland Resources GP, LLC.
Frischer currently serves as a self-employed private investor, a role he has occupied since 2009. He previously served as general partner of LF Partners, LLC, a principal at Zephyr Management, L.P., and a principal at Capri Capital.
Last month, ImageWare issued financial results for Q2 2017, as well as a corporate update to highlight the company’s progress.