BIO-key to replenish coffers with $1.8 million offering of common stock and warrants
BIO-key has announced a price of $1.50 per Unit of an underwritten offering of 1,200,000 Units, to raise expected gross proceeds of $1.8 million, which would increase the company’s cash on hand as it navigates the evolving biometric solutions market.
The Units consist of the same number of shares of common stock, along with warrants to purchase an aggregate of 900,000 more, also exercisable at $1.50, and expiring five years after they are issued. The underwriter has also been granted an over-allotment option within a 45-day period of up to 180,000 shares of common stock and/or 135,000 warrants.
BIO-key has engaged Maxim Group LLC as the offering’s sole book-running manager and the offering is expected to close on or around August 24, with the customary closing conditions.
The company says the proceeds will be used for general corporate purposes, including working capital.
Despite slow sales in Q2, BIO-key has reiterated its full-year revenue guidance, with CEO Michael DePasquale highlighting new distribution partnerships and business development initiatives. The company also recently announced the deployment of its fingerprint software by Latin American telecom Claro to protect customer data.