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AuthID raises $8.2M in share sale, renegotiates $8.9M of debt

AuthID raises $8.2M in share sale, renegotiates $8.9M of debt
 

AuthID, a provider of digital identity authentication solutions, has raised $8.2 million in its latest share offering.

The deal saw AuthID sell 17.9 million shares of its common stock at a price per share of $0.458, or $0.50 if the purchaser was a director of authID.

The gross proceeds from the offering were estimated to be approximately $7.3 million before deducting fees and expenses. 

In addition, the firm also reached a deal with its lenders, which will see $8.9 million of it’s “Convertible Notes” be exchanged for approximately 19 million shares of common stock, at a price of around $0.472,  or $0.515 if the holder of the Notes is a director of authID.

A Convertible Note is a type of short term debt that converts to equities, combining features of a bond and stock.

authID intends to use the net proceeds of the offering for working capital and general corporate purposes, with a “focus on delivering fast and lightweight, strong biometric authentication services to enterprises.”

The latest financing news comes as the company has been undergoing serious executive upheaval.

authID recently got a new chief executive officer in the form of Rhon Daguro, who had previously been CRO at Socure, a platform for digital identity verification.

In addition, Joe Trelin, who had previously served on the board since April 2022, was appointed as the new Chairman of the Board.

The company reported losses of $24.2 million, or $0.97, per share, on revenue of $527,000 for its most recent financial year ending December 2022, citing its own raw data.

The company cited growing expenses as the reason for the widening losses, citing an acceleration of its investment in staff, technology, and sales and marketing in the later half of 2021.  

The company was however able to quote doubled software license revenue of $200,000.

Despite the losses, the firm pegs 2023 its “next stage of market growth.”

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