Kabn Systems and ITBiometrics launch new investment initiatives
Online identity verification company Kabn Systems has announced an update to its irrevocable subscription plan announced on August 18, 2020, and plans to use the funds raised to accelerate the development and customer acquisition of its biometrics and blockchain-backed digital identity portfolio.
The total subscription, coming from a group of arm’s-length U.S. family offices and foreign investors, is for 9 million common share units for gross proceeds of C$2,970,000 (US$2.25 million).
Commenting on the news, Kabn said it has received confirmations from the investment group the funding will close as soon as possible at the agreed terms and pricing.
The successful conclusion of the funding round will provide Kabn with working capital as it continues to develop its platform consisting of Liquid Avatar, Kabn ID and Kabn KASH services and Kabn’s Visa Card program. Liquid Avatars and Kabn ID utilize biometrics for identity verification.
Each Unit is currently priced at C$0.33 ($0.25) per Unit and consists of one common share of the Company and half of a Common Share purchase warrant. Every whole Warrant, on the other hand, entitles its holder to purchase one Common Share for C$0.37 ($0.28) per share for 24 months from the closing of the transaction.
Kabn System clarified that no fees were paid in association with the financing and that all shares will be subject to hold periods ranging from four months to one year.
Together with the subscription agreement update, the company also revealed that its Chief Executive Officer Benjamin Kessler was resigning from its position for personal reasons.
Kessler will remain a senior advisor to the company and a member of the Board of Directors, while David Lucatch, president and chair of the Corporation, will take over as CEO.
Kabn Systems’ Q2 financial results were filed on August 28, 2020, and are now available on SEDAR.
ITBiometrics launches new offering For accredited investors
Following the move, the company will be accepting funding from accredited investors starting from a minimum of $5,000.
Accredited investors will also be able to participate by investing in a convertible note that pays 8 percent per year and converts to ITBiometrics stock at a 50 percent discount prior to a planned Regulation A IPO, which will happen in the course of 2021.
“ITBiometrics has a Regulation A IPO planned within the next twelve months, where even non-accredited investors will be able to invest and have publicly traded stock in our company,” ITBiometrics Founder Howard Prager said.
The funds will be deployed to partner with investors to help scale manufacturing and distribution of OEM hardware products using biometric technology
“Our powerful new products, the ITBx, and the BCD, are poised to completely transform identity authentication,” Prager explained.
“Funding means we’ll be able to quickly penetrate the market, invest in product development, and move faster towards universal adoption.”