SuperCom raises $3.2M to support health and security biometrics growth

SuperCom is the latest publicly traded biometrics company to raise funds with a share placement, as Ping Identity shareholders look to sell company stock. Businesses also continue to provide financial health updates, with Vsblty and Remark Holdings reporting quarterly results.

SuperCom raises funds with private placement

SuperCom has raised $3.2 million through a private placement of roughly 2.37 million ordinary shares in the company and accompanying warrants for up to the same number of shares with accredited investors.

The placement has a price of $1.35 per ordinary share and accompanying warrant, and the warrants are immediately exercisable at a price of $1.70, with an expiry five years on. The private placement closing is subject to customary closing conditions specified in the securities purchase agreement.

“The proceeds from this offering can help support, among other things, working capital growth as we further invest in and build our technology products and solutions,” comments Arie Trabelsi, CEO of SuperCom. “We believe that as the needs for our Pure Health and Pure Security solutions continue to grow, we need to continue to improve and provide technology enhancements, short delivery time and the same exceptional service they’ve come to expect from us. And in turn, we expect to not just maintain, but grow these high-margin recurring revenue streams in the future.”

The company also announced a $1 million e-Gov contract win in April.

Ping shareholders launch follow-on offering

A proposed follow-on offering of common stock in Ping Identity by shareholders has been announced, with 7.5 million shares available, and an additional 1,125,000 shares granted to the underwriters.

The share offering does not dilute the ownership of existing investors, and the company itself will not receive any proceeds. The proposed offering is being made available only by means of a prospectus.

Vsblty details positive prospects in corporate update

Vsblty earned revenue of $407,000 in its first quarter of the current fiscal year, and expects to recognize revenue of over $500,000 in Q2, according to a corporate update.

The company began work on a product extension and licensing agreement with a Fortune 500 company in February, and together Vsblty and its partner plan to use computer vision and the DataCaptor software module to develop a solution for the sports and entertainment vertical.

Vsblty expects strong results in the third and fourth quarters based on its Smart City security initiatives in Latin America, anticipated growth in a reopening retail economy, and new opportunities to support COVID-19 responses. While projects were delayed during the second quarter, none were cancelled on Vsblty, according to CEO Jay Hutton, the company is planning participation in a smart custom digital display program with a major retail drug store chain, beginning in July. Hutton is also bullish on the propects of Vsblty’s COVID-19 recovery solutions.

“On the security side of the business the smart city project in Mexico City is executing successfully and returning tangible results in crime reduction,” Hutton adds. “The addition of thermal sensing capability in Miguel Hildalgo has led to product expansion that can be applied in multiple markets. Expansion to Colombia was announced by the company in the second quarter and is expected to scale in the coming months.”

Remark reports challenging quarter

Remark Holdings has reported first quarter earnings of $0.4 million, down from $1.2 million in the same quarter a year earlier, attributing the lower revenues to factors including the U.S.-China trade dispute, COVID-19 related lockdowns, and working capital constraints. Revenue decreases from unrenewed Remark Entertainment contracts accounted for $700,000 of the $800,000 difference from 2019 to 2020, as the company scales back that business line.

Operating loss during the quarter was $3.9 million, compared to a loss of $7.1 million in Q1 2019.

During the quarter, Remark repurposed its AI products, including biometric facial recognition platform KanKan AI, for the North American and European markets. The company also added body temperature and mask detection capabilities to KanKan AI.

The platform has been deployed to detect fever among students in Hangzhou school systems, according to the announcement. Supermarket chain CP Lotus is applying Remark’s facial recognition and other technologies to turn another one of its stores into a “smart” store as well.

“The first quarter of 2020 was one of renewed focus for Remark Holdings as our development team localized our award-winning AI-solutions for the U.S. market, and improved our educational thermal scanning product in response to the ongoing COVID-19 pandemic. Our product line of high-quality, highly-effective thermal imaging solutions leverages our innovative software to provide customers with the ability to scan crowds and areas of high foot traffic for indications that certain persons may require secondary screening,” notes Kai-Shing Tao, chairman and chief executive officer of Remark Holdings. “We spent much of the quarter on product development and building out our U.S. sales and support team, recently showing initial success with casinos, entertainment complexes, sports venues, restaurants, hospitals and medical centers as well as other industries.”

Article Topics

biometric identification  |  biometrics  |  digital identity  |  facial recognition  |  mask detection  |  Ping Identity  |  Remark Holdings  |  stocks  |  SuperCom  |  temperature monitoring  |  VSBLTY