By Sheri Kasprzak
Atlanta, June 14 - BIO-Key International Inc. has revealed the details on its previously announced $4,794,723 private placement.
The company sold $2,794,723 in secured convertible term notes to The Shaar Fund Ltd. and $2 million in secured convertible term notes to Laurus Master Fund, Ltd.
The notes sold to Shaar mature May 31, 2008, bear interest at 9% annually and are convertible into common shares at $1.35 each. Shaar also received warrants for 828,066 shares, exercisable at $1.50 each.
The notes sold to Laurus mature June 7, 2008, bear interest at Prime rate plus 200 basis points with a 6% floor and are convertible into common shares at $1.35 each. Laurus also received warrants for 444,444 shares, exercisable at $1.55 each.
Jesup & Lamont Securities was the placement agent.
Based in Wall, N.J., BIO-Key develops finger-based biometric identification and wireless public safety products. The proceeds from both notes will be used for working capital.
First issue
| Issuer: | BIO-Key International Inc.
|
| Issue: | Secured convertible term notes
|
| Amount: | $2,794,723
|
| Maturity: | May 31, 2008
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | $1.35
|
| Warrants: | For 828,066 shares
|
| Warrant strike price: | $1.50
|
| Placement agent: | Jesup & Lamont Securities
|
| Investor: | The Shaar Fund Ltd.
|
| Settlement date: | May 31
|
| Stock price: | $1.08 at close May 31
|
|
|
| Second issue
|
| Issuer: | BIO-Key International Inc.
|
| Issue: | Secured convertible term notes
|
| Amount: | $2 million
|
| Maturity: | June 7, 2008
|
| Coupon: | Prime rate plus 200 basis points, 6% floor
|
| Conversion price: | $1.35
|
| Warrants: | For 444,444 shares
|
| Warrant strike price: | $1.55
|
| Placement agent: | Jesup & Lamont Securities
|
| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | June 7
|
| Stock price: | $1.05 at close June 7
|
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