By Sheri Kasprzak
New York, Jan. 25 - Bio-Key International, Inc. said it has received an extension on $7 million in secured convertible notes from Laurus Master Fund Ltd.
The conversion price was also lowered on the notes as well.
The maturity of $5 million in notes issued on Sept. 29, 2004 was extended to Jan. 1, 2008 from Sept. 29, 2007 and the conversion price lowered to $0.85 from $1.35.
The maturity of $2 million in notes issued in June 7, 2005 was extended to Dec. 1, 2008 from June 7, 2008 and the conversion price lowered to $0.85 from $1.35.
Also, the strike price of all warrants issued from the offering was lowered to $1.00 per share.
For the extension, Laurus received warrants for 150,000 shares. The warrants are exercisable at $0.70 each.
Also, the company received an extension on the maturity of $5,288,221 in subordinated convertible promissory notes to Jan. 1, 2009 and $3,244,723 in subordinated convertible promissory notes issued on May 31, 2005 to Jan. 1, 2009. The interest rate on the notes was also reset to 15% and the conversion price was set at $0.70.
Separately, Bio-Key raised $1 million from a private placement of convertible notes with The Shaar Fund, Ltd.; Longview Fund, LP; and Longview Special Finance.
The notes mature Jan. 1, 2009, bear interest at 15% annually and are convertible into series B preferred stock. The preferreds are convertible into common shares at $0.70 each.
The investors also received warrants for 500,000 shares, exercisable at $1.00 each.
Jesup & Lamont Securities Corp. was the placement agent.
Proceeds will be used for working capital.
Based in Wall, N.J., Bio-Key develops finger-based biometric identification and security technologies.
| Issuer: | Bio-Key International, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $1 million
|
| Maturity: | Jan. 1, 2009
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Conversion price: | Into series B preferreds, which are convertible into common shares at $0.70
|
| Warrants: | For 500,000 shares
|
| Warrant strike price: | $1.00
|
| Investors: | The Shaar Fund, Ltd.; Longview Fund, LP; and Longview Special Finance
|
| Placement agent: | Jesup & Lamont Securities Corp.
|
| Settlement date: | Jan. 23
|
| Stock symbol: | OTCBB: BKYI
|
| Stock price: | $0.85 at close Jan. 23
|
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