$9.4M anticipated from authID share sale; Recurring revenue growing fast
Biometric authentication firm authID says its booked annual recurring revenue is on a tear. The company also has agreed to the sale of 1.5 million common shares.
AuthID executives say that they closed $1 million in booked annual recurring revenue in the third quarter, a record for the company. Like most of its peers, the company is trying to claw its way out of distress.
In fact, they said that based on what it’s in the pipeline, they have doubled authID’s booked revenue target through the first quarter of fiscal 2024 – to $6 million. The target for all of fiscal 2024 is $9 million.
At the same time, executives said they had generated new cash by selling 1,574,990 common shares in a registered direct offering. That kind of vehicle is used to narrow the investors who will buy stock – typically accredited and institutional buyers.
Share price was set at $6 and existing shares on the Nasdaq were trading at $7.20 at about noon November 22.
The sale, expected to close November 22, is expected to generate $9.4 million before customary deal fees and expenses.
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