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ImageWare converts debt into shares and other shares into cash

ImageWare converts debt into shares and other shares into cash

ImageWare has completed a private placement of $8.9 million of newly designated Series C Convertible Preferred Stock with four new institutional investors. The shares will accrue 8 percent annual dividends payed in cash, or 10 percent paid in common stock, and are convertible into common shares at $1 each.

The company’s stock opened at $1.02 and rose to $1.05 in early afternoon trading on the OTC market, after closing the previous day at $1.01.

Northland Capital Markets acted as the exclusive placement agent for the financing.

At the same time, approximately $6.9 million in unsecured debt was converted by its holders into 6,897 shares of existing Series A Convertible Preferred Stock. ImageWare’s Board of Directors declared a dividend for Series A Preferred Stock-holders, who will receive a warrant to purchase approximately 40 common shares for each outstanding Series A Preferred share converted.

“We are extremely pleased with the financial commitment that our new investors and our existing debt holders have shown in support of the Company’s efforts through this financing and debt conversion,” said ImageWare Chairman and CEO Jim Miller. “The proceeds from the Series C Financing will enable us to expand our sales and marketing efforts.”

The company recently reported major earnings increases for the second quarter and first half of 2018, with pending major sales still in the pipeline.

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