AuthID launches on Nasdaq, signs credit union biometrics deal: shares up
The Nasdaq listing of authID.ai has been completed at an offering price of $7.00 per share, slightly higher than previously indicated, bringing in approximately $10 million for the company to invest in the development of its software and biometrics platform, according to a company statement.
The company has also announced a customer win, with CU NextGen singing on to provide authID’s biometric authentication to its credit union clients to enable them to verify the identity of their members both in person and through digital channels with a consistent experience. In addition to authID Verified for multi-factor, cloud-based authentication, CU NextGen will also utilize Proof for new customer onboarding and AuthentifID for passwordless strong customer authentication based on FIDO2.
“authID is committed to helping financial services companies combat identity fraud by knowing with biometric certainty who is transacting on their platform,” comments authID.ai CEO Tom Thimot. “authID’s solutions enable CU NextGen to deliver upon its promise of bringing the highest levels of identity assurance and providing frictionless experiences that now allow credit union members to verify identity whether in-branch or online with similar practices in either setting.”
CU NextGen supports more than 40 credit unions across the United States, according to the announcement.
“We empower our clients to own their member and employee experiences, and one of the ways we have done that is by creating custom interfaces for new customer onboarding. Of course, the need for strong identity verification and secure authentication is critical to that process,” says Kent Zimmer, CEO of CU NextGen. “By adding authID’s biometric identity services to our platform, we can help our members reduce risk, deliver enhanced identity trust, and offer the seamless convenience of passwordless login for credit union members.”
The underwritten public offering consists of 1,428,571 shares of common stock, with the underwriters granted up to 214,285 additional shares on a 45-day option. ThinkEquity acted as sole book-running manager. The company lowered both its number of shares offered and price in the run-up to the listing, to 1.5 million shares at $6.81 from 2.1 million shares at $9.63.
The funds raised will also go to expanding authID’s business development and marketing capabilities, provide working capital and be used for general corporate purposes.
In Friday trading, authID shares climbed as high as $9.63.