InterDigital invests $900,000; other investors buy $500,000 of stock
By Devika Patel
Knoxville, Tenn., March 4 - BIO-key International, Inc. negotiated a $900,000 private placement of 6% secured convertible promissory notes and common stock with InterDigital, Inc. on Feb. 26, according to an 8-K filed Monday with the Securities and Exchange Commission. It also will raise $500,000 by selling stock at the same price to other investors.
The investor will buy 4,026,935 common shares. The purchase price of $0.10 per share reflects a 66.67% discount to the $0.30 closing share price on Feb. 25. The company will sell 5 million additional shares to other investors.
The $497,307 of 7% notes mature on Dec. 31, 2015.
Proceeds will be used to repay debt, fund growth initiatives and as general working capital.
Based in Wall, N.J., Bio-Key develops finger-based biometric identification and security technologies.
| Issuer: | BIO-key International, Inc.
|
| Issue: | Secured convertible promissory notes, common stock
|
| Amount: | $1.4 million
|
| Warrants: | No
|
| Investor: | InterDigital, Inc. (for $900,000)
|
| Pricing date: | Feb. 26
|
| Stock symbol: | OTCBB: LQMT
|
| Stock price: | $0.30 at close May 31
|
|
|
| Notes
|
| Amount: | $497,307
|
| Maturity: | Dec. 31, 2015
|
| Coupon: | 7%
|
|
|
| Shares
|
| Amount: | $902,694
|
| Shares: | 9,026,935
|
| Price: | $0.10
|
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